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> "There are many reasons why a company may want to stay private" True. But there are a billion reasons to be looking for an exit - all those VC investors are
by ZachPruckowski 16y ago
> "There are many reasons why a company may want to stay private"
True. But there are a billion reasons to be looking for an exit - all those VC investors are eventually going to want to close out their funds and get real money for their institutional clients. Not to mention all the employees.
Most of these shareholders are going to want to cash out in the next few years, and $200 million in profits won't go far towards making that happen. They've got to exit eventually, and $33 billion is a lot for a major company to pay for Facebook when they don't have a clear monetization strategy. I mean, that's twenty times bigger than the YouTube sale. So IPO it is.
- pclark 16y agoThere's no doubt Facebook will IPO eventually. I imagine a lot of the employees could and probably have cashed some shares out in previous rounds. I'm sure VCs are happy to wait for their IPO (they can probably raise funds just by saying they own Facebook stock)