Saturday, February 4, 2012

Facebook IPO, will I pay for it soon?

Facebook has confirmed its decision of public listing in US. No exception, it will goes through the same process, the IPO (Initial Public Offerings) before truly become public. It has filed the prospectus for its IPO on Wednesday. It will be public listed in mid of this year. How will this affected us, like others 800 million users world wide?

Is it free service? Or it’s a Business?

“If you are not paying, you are not customer, you are the product.” Quoted from BBC News: Rory Cellan-Jones’ opinions- http://www.bbc.co.uk/news/technology-16835116.

We have been using the Facebook for free, and it has been part of our life. We used it everyday, fill in our profile, update status, play games, share hot news and topics and chatting or messaging. Facebook, a very successful social network website after Friendster.

Since we aren’t paying, how does Facebook earn profit? Obviously, by advertisement. Advertisers tend to show their advertisement at very popular place, where most of the people will get around. Facebook, everyone used it, everyone visits it just like going back home, hence advertisers love it the most! They pay Facebook for the advertising fee. The higher human traffic, the more expensive the fee would be.

That is how Facebook maintain the service, to provide a free sharing platform for everyone, at the same time provide a advertising platform for businesses. Time goes by, it becomes a business between Facebook and those advertisers.

Market Value of $100 billion

Apple Inc. has now with market value of more than $400 billion. And Facebook started its operation since 2004, and it is now valued at $100 billion. Every Facebook Inc.’ shareholders are expecting the value to gain after the IPO. Imagine, if I own 1% of share in Facebook, I would have $1 billion asset, hahaha…But it’s true, someone in Malaysia who own 1% of share in Facebook.

Tan Sri Vincent Tan, the 9th richest man in Malaysia

From: Business Times – RM1.5b Facebook windfall for Berjaya boss?

He, the director of Berjaya Group, has been a billionaire of about RM3.75billion. I believe many Malaysians know Berjaya Group, or they should know Berjaya Times Square in Kuala Lumpur, which is owned by the group. Sports Toto, our parents or grandparents should have bought it often. These are businesses owned by Berjaya Group, which is owned by Tan Sri Vincent Tan.

He privatise MOL Access Portal Bhd in 2008, which bought 100% stake of Friendster, and sold the patent to Facebook in 2010 with a trade of 700,000 as part of the deals, and turned into 3.5million shares by mid-2011. MOL, that’s a super worthy investment.

Vincent Tan, who owns MOL, which owns 1% of Facebook Inc. is more than enough to retired. As I said, if I have 1% of Facebook, I would have $1 billion asset. If I sell it, I could buy 10 houses..No no, 100 houses? LOL

What will happened to us, as Facebook users?

Will we have to pay for it soon? I don’t know, just wait and see. But I can assure we won’t have to. Since it’s not generating profit from us, why ask us pay? Definitely won’t.

Privacy is our concern. As I know, Facebook get its business very successful, but the privacy of each user is at risk. Who wants their personal details being exposed to the public, just to trade for free platform to share status everyday?

Perhaps, that’s not about trade, that’s about a habit. It’s addiction.

At least, I can earn money from Facebook.

I can buy Facebook stock market from Nasdaq? Trade Facebook like a boss..

1 comment:

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