It is the new year- new dreams, new hopes, new plans, new resolutions! Everything gets a fresh start; so did my thoughts!
The latest news on Goldman Sach’s evaluation of $50bn for facebook made me all the more pondering- that is this virtual world, the phenomena, the experience really worth it all?? Is it for real or a bubble?! Is it amateurish for facebook to go for an IPO and go publicly listed??
I am sure everybody would have his/her view and perspective on the IPO for facebook and I would be glad to read and receive them here
Further to my analysis, I have jotted some of my perspectives and views here on the current situation
#1. The beauty of recession
Todays’ situation in United States is unique. A country where technology, innovation and entrepreneurship has always paved way- a land of opportunities is so much badly affected by the self-spiraling financial meltdown, that the government and people are hell bent on creating new jobs, new sources of income to break it. Today, with Goldman’s investment of $450 mn, a normal tax paying citizen has becomes an investor! Because Goldman- a bank holding company has unfettered access to the federal discounts/federal reserve window which is simply a tax payers’ share!
#2. Facebook’s interest
Today, facebook is riding the wave. It is capitalizing on it popularity and power. Happy to have an investment of $450mn from Goldman Sachs! But is it ready to go public?? Is it ready to be publicly listed? Is it ready to share its books and financial statements to the public? Or will it be dragged into it? If it at all goes for the IPO- what are its plans post the IPO that would attract the public investors? Agree, facebook has changed the world of communication- an enabler in the cultural change. But does it warrant the amount of commercial interest that it is receiving??
#3. Facebook numbers
It recorded 500mn users. But how many are real? How many are active? How many are not used for spamming? The reason we are hooked to spending time of facebook is because we have not found an alternative to pass time. Once an alternative- s0mething like a cool new app on the iphone or a new experience comes, will we cling to facebook???
#4. The bubble
Starting from emails to dotcom to housing to real estate- every sector has been over speculated to a bubble and it has eventually busted. Is social media the next bubble where the investors are speculating? Whats next after social media- green energy sector?!
My take: Ride the wave and do not speculate. If I was at facebook, I wouldn’t agree to IPO. Why do I need to show my books?! And if I were at Goldman Sachs- I wouldn’t repeat the past mistakes of speculations and bubbles
This world needs something of real to sustain its existence
PS: I am sure this post will have a better outreach if posted on facebook. Because this is its point of sell- outreach. Hence, I will post it on facebook ;)
5 comments:
So true.People are now afraid of going as public ltd or public listed company.Faith in system is shaking.
so true...and sister must say..u write really well..completely appreciate...
Interesting read,Zeal!
"Ride the wave and don't speculate"-I go with you!!!:)
My business acumen is not that good,so i am not worthy enough to comment on the IPO issue,but still I feel your closing line "Ride the wave..." is very apt.It does strike a chord inside:)
Facebook has indeed become an integral part of our lives.Somehow I feel as humans ,our basic nature is that of sharing and expressing.We are here to express ourselves and a medium like this serves as an ideal platform as of now.
Somehow,I have a soft corner for orkut too,because this whole idea was after all introduced by orkut and now it is almost sidelined.My business sense is almost nil,but somehow I feel that why can't facebook collaborate with orkut(Google)and then ride the social network wave together?
Does it makes sense?:)
You write really well:)
I wish someone from the facebook management should reward you for writing such an interesting article.
Kudos!
@Bhavya:
Thanks for the comment :)
About merging facebook and orkut: I don't think it will work. The reason is these two sites had completely different philosophies. Orkut was more public where as facebook was about control and exclusivity. Facebook allowed its user to control what to show to the online world. It started with exclusivity for it first opened to Harvard then ivy leagues then other US schools and then finally different countries. Hence people looked upon it for they thought it was elite!
It was never the case with orkut! So I do not see a good reason to bring facebook and orkut together
I see...that's quite informative Zeal...Now I can cleary see the difference in both the philosophies:)
Thanks for such an insightful answer.
Lots of love,
Bhavya
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