Is Facebook Missing an Opportunity by Saying No to an IPO?

19 thoughts on “Is Facebook Missing an Opportunity by Saying No to an IPO?”

  1. I wouldn’t claim to know more about these topics than you or Cramer, but I like giving it another year to germinate – granted that year will likely see profound changes in these platforms. While we all live and breathe it, this category is still an infant. Who will win is like trying to predict who will win the World Series from the first pitch on opening day. (A baseball analogy just for you, Om.)

  2. Phew, talk about missing the boat. Is it me or does anyone else wonder either how much more growth they can manage or if its about muzzling zuckerberg long enough to improve brand perception. Either way they’re a risky IPO in any case. No thanks.

  3. 2 years could be a long in the social networks era. Depends on what Zuckerberg’s got under his sleeves. If things bring in a drastic change to the face of social network and when FB misses being in the boat, it will be a bad thing

  4. Interesting – but the underlying suggestion is that the company should go public now and place the risk in the hands of the public, rather than dot the “i”s and cross the “t”s first. An IPO isn’t about the day of the deal, ideally it’s about the years (and the stock performance) that follow. While there are always risks in an unknown future, hats off to any company that views the transaction from a long term perspective, as Facebook appears to be doing here.

  5. Om, you are absolutely right about there being great risk going forward for the company. It does seem that they are so tied into the fabric of the web and have so much personal content about us that for the next few years at least they should be able to grow safely. Like you implied above, the challenge is they have multibillion dollar companies gunning for them.

  6. Going public is overrated. Once you do it, you’re no longer permitted to grow in a rational way, or plateau, if that’s what makes the most sense for your business. I would not want to take a company I started public.

    1. Well, you do have a valid point, but if no company went public, the world economy would collapse. Also, Jeff, you’re forgetting an advantage that founders have when they take their company public: they usually get a very large sum of cash that they get to keep regardless of how their company performs after an IPO.

      1. Oh God. The World would collapse If no company went public? Clearly you have no idea what stock markets can and can’t do. All they do is give companies money to grow (which they can get elswhere without all the negatives associated with being public) which is good for an economy as a whole or give the founders to cash in (which is good for the founder(s) but not directly theneconomy).

        If I had the choice I would never go public!

  7. I would not invest 1 penny on facebook if it goes public. This company has matured already and is ready to fall. Its just like myspace and look at the ranking of myspace now. I think facebook is worst than myspace and i personally dont even go there. Its the most boring social network site i ever seen. If you invest in facebook…good luck in throwing all your money away. Once it goes public, its a fall from there.

  8. Well if the anger Zynga they are history and they both need each other like eBay and PayPal did. I would sell out now but that’s me. IPOs are good for making people instantly rich and common shareholders a little richer if timed right. Facebook has growth left but $80 billion for $2 billion in revenue? Hah, never. Facebook will be your grandma’s social network in 5 years.

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