When Facebook held its initial public offering (IPO), it meant several significant changes for businesses. The IPO was expected to rake in the projected 100 billion dollars, and the amount could be more than Disney & McDonald’s. The founder of Facebook, Mark Zuckerburg was expected to make a whopping 25 Billion dollars for himself in the deal. With 800 million users around the world, this means 1 in 10 people on the planet use Facebook!
The Social Media is ten years old – it started with the creation of Friendster in 2002, Facebook in 2004, and Twitter in 2006. While Yahoo tried to buy Facebook for 1 billion dollars in 2006, Microsoft invested 140 million dollars in Facebook in 2007. In 2009, Digital Sky invested 200 million dollars and in 2010 Goldman Sachs and Digital Sky invested 500 million dollars in Facebook. In January 2012, Facebook halted the selling of its shares in secondary markets, signaling the prospect of an impending IPO.
It has been seen that many companies have been slow to adopt these latest technologies, initially viewing them as a passing fad for teenagers. But, the companies have seen the impact of the Social Media, and realized that it represents a whole new channel for information; and it is here to stay. While several Social Media companies have come and gone or have been reduced in popularity, Facebook is one of the most popular social media tool that has affected our lifestyle. A survey conducted in 2011 shows that about 79% of social net workers use Facebook.
The added stability of the Facebook IPO lets consumers know that they can rely on this channel for personal communication and to view new products and services. Man is a creature of habit, and would like to have the technology that he can trust so that he can continue to share information, photos, videos, and news content with friends, family, and businesses.
Extended Reach for Developers
Facebook IPO lets developers reach out for their services on a reliable platform and to make improvements, which benefits the consumer. A developer would like to know that a technology will exist in future, giving him time to secure capital for R&D, perform market research, and make the finished product suitable for use.
The Facebook IPO advertisers can target their audiences with improved demographics, statistics, and improved numbers of subscribers/members – enhanced by increased advertising opportunities with the new TIMELINE feature. It has been seen that Ads currently make up 17% of Facebook’s revenue.
The article speaks of the Facebook IPO and some interesting statistics about the investments made on Facebook. Several social media companies have come and gone, but Facebook is here to stay because of its immense popularity. It is seen that an estimated 79% of social networkers use Facebook.