I thought this article was interesting, especially after discussing in yesterday's class where social media is going in the future. The article mentions that Facebook could raise $10 billion in just its initial public offering. One TechCrunch writer argues that Facebook becoming responsible to stockholders would mean that the site would be less free to innovate and would be more concerned with making a profit than focusing on users' Facebook experience. This would mean that we would see more advertisements popping up than we already do.
2 comments:
What amazes me the most about all this is that Facebook is now valued at $100 billion. It seems as though every time there is talk about Facebook going public, its valuation is about double of the previous time.
It seems like Facebook's valuation is almost impossible to figure out. Like you said, it's different every time. I think that TechCrunch's writer is pretty accurate. If Facebook becomes a public company, it's focus is no longer going to be on making a "cool" product that people like. Facebook is going to focus pretty much entirely on profit. I think this switch away from creating for the users and creating for the stockholders will hurt them greatly, especially with other social media sites like the Google's Bubbles product available.
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