Facebook IPO watch: Facebook has filed the IPO application documents with the U.S. SEC and propose raising $5 billion and trading its shares on the Nasdaq Stock Exchange under the ticker symbol “FB”, Morgan Stanley, JP Morgan Chase, Goldman Sachs, Bank of America Merrill Lynch join together to form the Facebook IPO’s underwriting syndicate. Read more about the Facebook IPO.
Let’s list the recent frequently asked questions by investors as below:
1. Can Facebook make disruptive innovation of business model?
Facebook introduced the dimension of social relations for the first time in the Internet business, and the number of users affected by the dimension is tremendous and the coverage is very broad. From this perspective, many things will be changed, just as the Apple added finger touch in the mobile phones,which completely subverted the traditional cell phone concept. The Facebook Social Graph would probably subvert the existing Internet business and all the internet productions would be marked with the imprints of socialization.
2. Will Facebook become another Yahoo?
Social advertising has huge potential and what Facebook has done is just a small test. Facebook advertising revenue maintains the growth rate of doubling every year. The Facebook IPO would promote this advertising model to be learned by more companies. In addition, the Facebook’s social advantage scope is not confined to advertising, there are more fields such as application devlopment, games, corporate marketing, customer relationship management depending on the Social Graph of Facebook. The potentiality outburst needs order, and also takes time.
3. What’s meaning of the Facebook IPO?
Facebook has to choose IPO in views of the number of shareholders, or considering the return to employees and investors. This is the natural choice. From the perspective of the employee number, Facebook is still a small company. In addition to the factor of investment return, what is more important is whether Facebook could continue to maintain the corporate culture and working atmosphere which attract and retain employees.
4. Is the Facebook IPO valuation of $100 billion expensive to the secondary market investors?
The question depends on the investing period the an investor chooses. Facebook will become a great company and in fact, it is already a great company which has changed history. Its achievement will not be inferior to Apple, Microsoft and Google.
5. Considering the Facebook IPO, can we reappraisal Google?
Facebook is turning the Google’s rear, to some extent, but Google’s counterattack is also very resolute. As the two giants are accommodated in one Internet, they will inevitably invade the interests of each other. In contrast, it is easy for Facebook to break through the interest margin of Google rather than Google does the same thing.
6. Is the prospect of Facebook in the mobile social field bright?
We have digged into the Facebook IPO prospectus, finding there are three issues: 1) The number of the Facebook mobile users is increasing at a significant speed, but monetization has not yet begun; 2) Facebook mobile terminal is subject to the operating system, such as iOS and Android; 3) New mobile social products continue to heat up, such as micro-letter, which may have a significant influence on the Facebook mobile terminal. Facebook has not explored the mobile Internet yet, and just issued a limited number of mobile applications. However, Facebook will release its own mobile development framework at some time in the future, becoming the competitor of Google, Apple and even Microsoft in the mobile terminal battle.
