Facebook finally goes public

Rachael Ramos

The Silhouette

Since the release of Facebook everyone was wondering when it would go public. Well, eight years it’s finally happening.

Late in January, Facebook announced its initial public offering through which anyone will be able to buy shares of the social network company on an open stock exchange.

According to popular tech blog Wired.com, Facebook founder and CEO Mark Zuckerberg seeks to raise $5 billion in initial funding.

This is in line with some of the largest IPOs in technological history, unsurprising considering the size of Facebook and its increasing popularity.

“According to the company’s IPO filing, in 2011, it recorded revenue of $3.7 billion, operating income of $1.75 billion, and net income of $1 billion,” said Wired.com writers Tim Carmody and Mike Isaac. “While the company’s S-1 filing does not list how much shares will cost upon the date of the IPO, Facebook’s most recent estimate as of December 31 puts the per share price at $29.73”.

Now, the question is, what does this IPO mean for Zuckerberg, the longevity of Facebook, its users and the greater economy?

Without a doubt Facebook has helped define social networking, created new marketing techniques and challenged Google. As a publicly traded company, Facebook could face more pressure than ever to turn an increasingly bigger profit quarter upon quarter.

The more money a company takes in, the more obligated it becomes to function in accordance with the properties and rules of money. According to CNN, since becoming public, Google has had to prove its devotion to its shareholders’ interests by cutting pet programs, showing earnings’ growth, and demonstrating focus over big dreams.

No more touting that employees get 20 per cent of their work hours to do whatever they want. With the money raised through IPO this will empower Facebook to gear in a more serious challenge to Google by looking to improve their search function. It’s a real corporation now, and viagra order it has to behave like one.

For users this transition from bring a private sector to becoming public means perhaps getting a share in the company’s wealth, since it is the users who helped Facebook become so popular. The site has now more than 845 million daily active users.

As previously mentioned, Facebook has earned an estimated $3.7 billion in revenue. This had McMaster Facebook user Philip Pambrun thinking that maybe Facebook should spread the wealth and encourage users to take their case to Zuckerberg himself.

“Facebook is about to file for an initial public offering in a moment. Am I the only person that thinks every Facebook member should receive at least 1 share at initial post?” wrote Pambrun. “If it wasn’t for all of you loyal and faithful Facebookers, this would never have gotten this far. So, everyone, message the high “Z” for your minimum 1 share.”

Simply becoming a multi-billion-dollar company changes the essence of its goals, activities and purpose.

“There is a huge need and a huge opportunity to get everyone in the world connected, to give everyone a voice and to help transform society for the future,” said Mark Zuckerberg, Facebook’s CEO, in a letter that accompanied the filing.

It seems Zuckerberg wants the world to share in his fortune and help further the Facebook industry, but is this the real reason?

Zuckerberg reportedly decided to go public once it became clear that the company had become too big to keep its finances private.

By going public, Facebook loses some of its mystery and cool, having to declare profits and losses and answer to shareholders every quarter. By going public, Zuckerberg will need to provide the same kind of transparency with its customers and now the same with his public investors. It could be even more troublesome for the company fundamentally built on the premise of sharing.