Facebook’s IPO: It is an opportunity for social network to grow up a corporate

Facebook, Inc. is on the verge of initiating the procedure of filing at Securities and Exchange Commission, US. The new stride into the corporate world is going to raise as much as $10 Billion from Initial Public Offering.

This opens up new horizons for the social network to widen the span of their operations. The social network will probably become a publicly traded company by the end of these summers and this will offer new opportunities to them in terms of spending, innovation, acquisition and more offices all over the world.

At the moment what Facebook should do is to rest on its feet for a while and do nothing stupid that endangers the trust of investors. After all, it is only a social network; it does not sell or manufacture computers and semi-conductors that can solidify their earnings and potential.

To this day and till the IPO, the one and only source of revenues to Facebook has been advertisements, that have earned the network in tune of $4 Billion, give or take some. But Facebook has been involved in acquisitions last year. For example, it acquired the likes ofChai Labs, HotPotato, Beluga and MailRank in order to reinforce the technical support for the users and securities and stuff.

Moreover, Facebook employed Google‘s corporate development specialists, Amin Zoufonoun to revamp the technical operations and deals with third-party developers. Zoufonoun’s upper limit to spend on strategic partnerships and acquisitions is likely to rise up substantially as the venture goes public.

On the other hand, Facebook will also have a financial support for the launch of their new smartphone. Although there is no substantial evidence to news, there are signs that the social network is planning to tow the lines of Google and Amazon in mobile technology. However, this new phone will not be totally an Android-powered phone. There are chances that it will incorporate heavily tweaked Android OS to the liking of Facebook.

All this is only possible with a successful IPO that is probably planned for the summers this year. Facebook has examples of both successful initiation of LinkedIn and disappointments that Zynga has faced, which is a strategic partner with Facebook.

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Posted by Usman Khalid on Jan 30 2012. Filed under Business, Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.