Most companies change dramatically after their initial public offering.
There is a reason that Facebook is going public. And while many are speculating as to the reasons by digging through the company’s SEC filing, I think Facebook is going public because it needs to now compensate those who have built it to become the impressive empire that it truly is. It may be a simplistic view, but that’s my view. The bigger question that is on everybody’s mind is: will Facebook change once they are a public company? The answer is, without a doubt, "yes!"
Is that a bad thing?
No. Not at all. Let’s face it: Facebook has been changing since it first started. Does Google look anything like Google before its IPO? What about Apple? The best companies, the most innovative companies are the ones who flow in a constant state of iterative change and evolution. Facebook’s challenge comes from its size. The sheer volume of users and the sheer value of the valuation will make it have to perform unlike any company that has come before it. When you have over 800 million users (and closely approaching one billion users), any move (big or small) will ruffle feathers and create backlash within the user community. It’s a part of the Facebook ecosystem and you can expect that to increase as the public takes stock in the business.
Applaud Mark Zuckerberg.
In preparation for the IPO, Facebook founder and CEO, Mark Zuckerberg, embedded a "letter to the shareholders" within the SEC filing (to read the full letter, please go here: Fast Company – Mark Zuckerberg Hacks S-1 Filing With Letter To Shareholders On Eve Of Facebook IPO) that stated: "Facebook was not originally created to be a company. It was built to accomplish a social mission – to make the world more open and connected. We think it’s important that everyone who invests in Facebook understands what this mission means to us, how we make decisions and why we do the things we do… We think a more open and connected world will help create a stronger economy with more authentic businesses that build better products and services." While Facebook may not have been created to be a company. It is now a company. A big company. And it’s soon to be a company that will answer to Wall Street. I thoroughly enjoyed Zuckerberg’s letter and said a silent prayer that Wall Street will listen to what he and the company would like to do. Yes, I’m still that naive (I’d like to think that I’m hopeful for change).
So, what can we expect from Facebook? (here comes the armchair quarterback…)
In the end, I’m hopeful that Facebook will change dramatically… but for the better. What do you think?
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