Facebook IPO announcement expected this week!
This entry was posted on Monday, January 30, 2012.
The executive editor of cbsmoneywatch.com says that Facebook will file the papers on Wednesday and the S-1 form that will be filed, will give us details on the offering and how rich the public may get. He said on 'CBS This Morning Saturday', "I think this is for real."
He said that the IPO will probably make Mark Zuckerberg's worth up to $20 million. "That would make him the 23rd richest person on Earth," he explained. "But I think what is cool is more than 1,000 Facebook employees will become millionaires."
When posed with the question as to why did Facebook choose this time to issue the IPO, he replied that this move has not been made in order to relieve debt or to increase Facebook's capital. Otter said, "He (Zuckerberg) has engineers and software people that work very hard looking for their payday. It's going to come this spring."
The Facebook IPO is expected to be the biggest initial public offering by an internet company. It also has the potential to break Google's record breaking offering back in 2004.
Rafe Needleman, CNET's editor sad that it's not all about how many users Facebook has, but the amount of time they spend on it. He said, "Once you're on Facebook, you're on for half an hour or an hour at a time. No other company has that." This time translated into increased advertisements that can be targeted at the user. This has led to privacy concerns because user's information can be utilized in order to send them relevant advertisements by Facebook. Needleman said, "It's called the 'digital tattoo. What you do online and what is recorded in a site like Facebook stays with you forever."