Monday, January 10, 2011

Are you ready for a Facebook Share?


Have you ever spent an hour just to have an IPO form filled up? I really feels like stuck in the middle of nowhere. Everybody coming from every sectors of society is on the line. The person who knows  about investment and also the person who knows nothing about the share investment, everyone is there. The result there will be multiples of oversubscription. This is what we have seen in these two or three years in the economic sector of the country. The country is borrowing from the other donor countries in the name of development and restoration of peace but we public are ready to invest billions of rupees on the share market, either IPO or the secondary market. Just imagine how much of them will get the share and the rest just a little interest for the invested amount. Thanks to Nepal Rastra Bank, who forced that law to provide the interest for the held up period.

Just imagine, what will be the situation if Facebook shares are here in the market? Try thinking. All right, the Facebook IPO is heating up the world economic news. What will happen to the Social Networking giant after it goes into IPO? How much will the CEO/founder Mark Zuckerberg earn if it goes public? Facebook need no introduction in the social networking news and for the finance, it sure does.

It is the current rule to go public or should disclose the regular financials, if the shareholder count  pass 500. When anything goes public then there comes the trouble. When it goes into IPO the current owner surely will get back their money in billions. Facebook has been valuated to be of $50 billion. Can you count the zeroes? Goldman Sachs has recently invested a $ 450 million and ready to invest another $ 1 billion on this giant. If it is investing in Facebook then it will gain in the huge amount. The Facebook  which started from a Harvard dorm room has now become the billion dollar baby with more than 500 million fans all around the globe. The finance of such a company is pretty awesome. With all those news of shutting it down, but still this giant is growing day by day. The people who knows internet, knows the Facebook.
On October 24, 2007, Microsoft announced that it had purchased a 1.6% share of Facebook for $240 million, giving Facebook a total implied value of around $15 billion. Microsoft's purchase included rights to place international ads on Facebook. In October 2008, Facebook announced that it would set up its international headquarters in Dublin, Ireland. In September 2009, Facebook said that it had turned cash flow positive for the first time. In November 2010, based on SecondMarket Inc., an exchange for shares of privately held companies, Facebook's value was $41 billion and it became the third-largest US Web Company after Google and Amazon.  Every big company is ready to invest on this website. This giant could be on the IPO during first quarter of 2012. Various reports have already shown that the wealth of the founder will be doubled up when it goes public. This company itself do not need money to run its site, management, maintenance and a group of around 2000 employees. It is the rule which needs it to go public.

From the day it came up live, till this date after seven years, the company is exploding up in everything, from the user counts to the asset, from the employees to the finances it hold up. The company did not get low with the competition from google orkut, yahoo, eBay, MySpace, etc., it just went on booming upward. The creator went on getting richer and richer. But the day has come up for this giant to go public like the Google, to be in the hands of the public. Let’s see how the public goes on with this giant. The question comes up again, will you get the same Facebook, ultra strong and ultra new, every time you hit the Login In button. Will it be your’s in some months? Will you be one of the owners of Facebook?

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