MAKING THE WEB A BETTER PLACE, ONE PUBLICATION AT A TIME.

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Posted by Trini Kid - - 0 comments

I'm sure you've heard the news that Facebook is planning to go Public as they provide an IPO that is based on stocks (Initial Public Offer). To some people this may seem as a good way to make money from the company that is allegedly worth 100 Billion Dollars, which would make Facebook 40% of Google, whose profits are 11 times more than Facebook.


But to some people the IPO by Facebook may seem a bit suspicious, and may lead to millions of shareholders begging for their money.

I know what your thinking,

"How can Facebook go bankrupt? Everyone loves Facebook"

That is absolutely true, but in recent times, a large proportion of Facebook users have gone mobile. This means practically $0.00 earnings from that proportion because there aren't really advertisements on Facebook mobile, and if it does then it may actually intrude the users' space, causing dissatisfaction. Unless Facebook does something about that, they will see a drastic drop in earnings. From 3 Billion dollars a year to a few million.

There is also the factor of competition from the internet giant Google. Google has released their social network called Google +, and from experience Google + is much better, with an entirely new look. It may be only a matter of time till everyone makes the transition to G+, and leave Facebook in the dark.

It has also been observed that Facebook growth has been slowing. Eventhough they have estimately 845 million members, the rate of new memberships has decreased.

So in retrospect, maybe Mark Zuckerberg is attempting to raise 5 Billion dollars by selling stocks in order to save his company from inevitable doom. I guess only time will tell