2012: Make or break facebook
I think 2012 will be the litmus test of facebook – sustainability not success. It is a success. Now the whole “privacy issue” is going to be tricky for facebook to manage. With continuous breach of trust facebook is testing the limits of it 800mn+ users.
The fact is facebook is now too big to fail . A 100bn+ IPO in 2012 is a fact. Now why the rush or push? I think the IPO will act more as an “insurance cover” rather than an action to raise more money for facebook.
Why and how insurance cover?
- A public listed facebook will have more weitage and more credibility – when it makes new product releases or updates that affects our privacy. You will now have more transparency – as per the facebook spokesperson.
- As a public listed company with millions of shareholders (I forecast) – if facebook fails millions of shareholders will fail. So by listing facebook it will not only raise some cash but the more important thing is that they will now have – millions of underwriters in their retail shareholders who will ensure facebook is not a forgotten story
So the IPO is good for facebook .