Does Facebook file for IPO in order to create jobs?
The COO of Facebook seems to indicate that they want to create jobs by going public. I wonder how big a factor the desire to create job is for their filing for IPO.
Facebook was created by college kidsfor college kids, and initially driven to its rapid growth by college kids. Now, it is far beyond college group. Hilary Kramer said she has surveyed 100 college students, and found Facebook has peaked. The students think it is too commercial, and they are concerned about privacy so they are moving to other social sites. Many rapidly growing companies need IPO to fund their growth because they make little profit or lose money during its initial growth period. Facebook made $1 billion profit last year. I assume they are making about $100 million profit per month now. I cannot help wondering if it is true that $100 million every moth plus probably over a billion dollars in the bank are not sufficient to fund their job creation. Is it possible that they are just trying to get the best price to enrich some poeckets while they can?
I personally feel much more comfortable with Google+ which is rumored to have 150 million users now. It was launched only a little more than half a year ago. I joined it before it was open to the public though I am yet to have the time and serious needs for it. Is this rival’s astronomic growth rate one of the reasons for Facebook to file for IPO now before it starts to lose users to Google+ and other social sites? It took Facebook only 2 years to destroy MySpace which was the top social site until 2008. I do not know if Google+ or another social site will destroy Facebook, but it would not be surprising at all if they take a big chunk of users out of Facebook. Moving from one virtual home to another is much easier than in the physical world.