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To be clear, Facebook is going public for two main reasons: 1. Because they have to at this point. SEC rules. Once you hit 500 investors a company must report e
by vivekmgeorge 15y ago
To be clear, Facebook is going public for two main reasons:
1. Because they have to at this point. SEC rules. Once you hit 500 investors a company must report earnings publicly.
2. Many investors want to cash out. But this could be delayed if reason #1 did not exist.
As for delaying going public and giving bankers the cold shoulder. MZ felt he could run the company better as a private firm. The dot com era is an example of companies and bankers trying to make a quick buck. Don't forgot it was followed by the dot com crash.