What Facebook IPO Means February 2, 2012Posted by Joanne KY Teoh in Convergence, Journalism, News, Social Media.
Tags: Facebook, IPO, Zuckerberg
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Get ready for the sharing economy with a new form of media – social networking. Facebook CEO and co-founder Mark Zuckerberg has finally taken his company public, filing papers for an initial public offering – through which anyone will be able to buy shares of the social networking company on an open stock exchange.
Facebook seeks to raise US$5 billion in the IPO that looks likely to be the largest by a Web company since Google in 2004 and could place the value of the social network as high as US$75 billion to US$100 billion.
We knew Facebook was big – you don’t get to 800 million users making over 100 billion connections with each other without making a few bucks. But until today, we didn’t know just how big. The filing revealed Zuckerberg earned a base salary of US$500,000 last year, more than triple the salary of Google co-founders Larry Page and Sergey Brin when Google filed for its IPO.
Zuckerberg, now 27, famously started Facebook when he was a student at Harvard University in 2004. For those who have seen the movie “The Social Network,” the Zuckerberg juggernaut is continuing unabated. Just as Apple challenged Microsoft for software supremacy, Facebook now challenges Google for Web supremacy.
The two Web giants are at war over what Jeff Jarvis calls “signal generation” – the ability to get us to generate data about ourselves – who we are, where we are, what we like, whom we like, what we buy, what we want, what we know, what we want to know – so they can serve us more relevant and valuable content, services, and advertising.
While the default in society is still privacy and anonymity, Zuckerberg hopes to strengthen how people relate to each other and sees a future where things and value should be tied to our identity. Beyond Google and other net services, which “crawl the web” with algorithms to seek information, his master plan is a social networking platform that connects humans to generate data, information and knowledge in a sharing economy.
This new form of media will not only redefine the Web, change human relationships, create a new marketing landscape, and challenge Google, but it will now rescue and alter the economy itself. It will infiltrate markets, creating new opportunities for a peer-to-peer “social” economy to take root. So if you buy this, buy Facebook shares.
There is a huge need and a huge opportunity to get everyone in the world connected, to give everyone a voice and to help transform society for the future.
The scale of the technology and infrastructure that must be built is unprecedented, and we believe this is the most important problem we can focus on.
Mark Zuckerberg, Facebook CEO
The Death of the Cyberflâneur – NYT