Posted on 01/04/2011 11:12:20 AM PST by Uncle Miltie
In Silicon Valley, going public used to be the ultimate rite of passage for a start-up — a sign it had arrived.
No more.
With its $500 million infusion from Goldman Sachs and other investors, Facebook is now flush with cash, and a market value of about $50 billion, giving it the financial muscle it needs to compete with better-heeled rivals like Google.
And Facebook hopes for an even bigger advantage from the deal, the ability to delay an initial public offering. That would allow it to remain free of government regulation and from the volatility of Wall Street. It would also allow Mark Zuckerberg, the company’s chief executive, to retain near absolute control over the company he co-founded in a Harvard dorm room in 2004.
(CLIP! More at source....)
(Excerpt) Read more at cnbc.com ...
That’s it. Now than lefties en mass know FB isn’t regulated so well it’s doomed.
Ummmm, Russian money is going into the deal. CNBS ignores the implications of this
Lving without Google - a problem. Living without Facebook - a hiccup. How do you get to $50 billion?
So, the question becomes, what is the Goldman Sach going to get out of this deal??
Because, as we all know, they do it for the money!
I don't understand how Facebook and Google are rivals.
They compete for your eyeballs, just like TV channels 4 and 7.
In this modern SOX world there really isn’t a good reason to go public anymore. The cost of compliance with SOX is higher than you’ll get from the IPO anyway, best to keep your accounting cheap and ownership in house.
To accept money from Goldman is like accepting money from the government. A money laundering corporation.
The head of FB fell into the hole: but he may have wanted to depending on the bribe made uhh contract or terms.
Advertising pays for eyeballs and clicks. Where people spend time on-line is what generates revenue.
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