4 ms·

The IPO is the signal, and this is more evidence. Facebook is being taken over by an MBA mindset, and that short term, cash first thinking spells doom for the c

The IPO is the signal, and this is more evidence. Facebook is being taken over by an MBA mindset, and that short term, cash first thinking spells doom for the customer experience and then the company.

alaskamiller 14y ago
Lol, no. The IPO is because Facebook can't continue to attract top talent in the valley without those option numbers meaning something.
- aik 14y ago
  Maybe it's a bit of both? Going IPO strictly to attract top talent seems a little naive, no?
  - phillmv 14y ago
    Well… Zuckerberg isn't liquid, is he? I'm sure you can find a buyer for Facebook stock right now, but it seems like the obvious way for all those VCs, angels and early employees to cash out. Being able to issue more shares to be used as stock options, or making your financials less messy to deal with, is merely icing on the cake
- IsaacL 14y ago
  The IPO is because once a company passes certain thresholds of investment/no. of investment, they have to make their accounts public. While this doesn't mean they have to IPO, once accounts are public, there is little reason not to IPO.
Robot_Overlord 14y ago
Agreed, I think most people at least consider leaving facebook frequently and with facebook going public investors will push these annoying but lucrative features (Although I almost like this one). If I remember correctly myspace declined steadily after going public itself.
- tg3 14y ago
  Myspace never went public, it was acquired by News Corp for around $600m.
  - mparlane 14y ago
    And no one let them forget it since.
    - waterlesscloud 14y ago
      Didn't they get their money's worth out of it, though?
      - mparlane 14y ago
        From what I could find, they lost $254 million on it.
jcampbell1 14y ago
I agree. I am an MBA type, and I think Facebook is backing into a valuation that is too high. They are doing stupid things to reach the $5B revenue and $1.5 in profits this year to justify a $100B valuation. Facebook may never be more than a $25B company, and that is still fantastic, but I hope they don't throw it all away by trying to be the next Google.

alaskamiller 14y ago

Lol, no. The IPO is because Facebook can't continue to attract top talent in the valley without those option numbers meaning something.

aik 14y ago
Maybe it's a bit of both? Going IPO strictly to attract top talent seems a little naive, no?
- phillmv 14y ago
  Well… Zuckerberg isn't liquid, is he? I'm sure you can find a buyer for Facebook stock right now, but it seems like the obvious way for all those VCs, angels and early employees to cash out. Being able to issue more shares to be used as stock options, or making your financials less messy to deal with, is merely icing on the cake
IsaacL 14y ago
The IPO is because once a company passes certain thresholds of investment/no. of investment, they have to make their accounts public. While this doesn't mean they have to IPO, once accounts are public, there is little reason not to IPO.

Robot_Overlord 14y ago

Agreed, I think most people at least consider leaving facebook frequently and with facebook going public investors will push these annoying but lucrative features (Although I almost like this one). If I remember correctly myspace declined steadily after going public itself.

tg3 14y ago
Myspace never went public, it was acquired by News Corp for around $600m.
- mparlane 14y ago
  And no one let them forget it since.
  - waterlesscloud 14y ago
    Didn't they get their money's worth out of it, though?
    - mparlane 14y ago
      From what I could find, they lost $254 million on it.

jcampbell1 14y ago

I agree. I am an MBA type, and I think Facebook is backing into a valuation that is too high. They are doing stupid things to reach the $5B revenue and $1.5 in profits this year to justify a $100B valuation. Facebook may never be more than a $25B company, and that is still fantastic, but I hope they don't throw it all away by trying to be the next Google.