Opinion: Is Facebook’s IPO Another Money Scheme?


Many users remain satisfied with Facebook’s service despite the company’s financial intersts. –Graphic by Chelsea Martin

Many users remain satisfied with Facebook's service despite the company's financial intersts. --Graphic by Chelsea Martin

Teenagers and young adults today can do a lot with just $2,800: pay rent and a down payment on a car or buy an iPhone and a high-tier computer. Now imagine what Mark Zuckerberg, the 27 year-old founder of Facebook, can do with 28 billion dollars.

With the release of Facebook’s IPO, or initial public offering, the popular social networking website aims to raise up to five billion dollars to help keep up the growth of the company along with other purposes.

If this goal is reached, Zuckerberg’s company may have a valuation of $100 billion. And according to http://cio.com, with Zuckerberg’s 28 percent stake in the company, he may be able to make 28 billion dollars with the help of this new IPO.

This raises the question for many of whether Zuckerberg, at this point, is more concerned with making money as opposed to expanding the way people communicate with one another; the answer is yes a�� it is more concerned about making money.

Although Facebook fosters an honest mission “to give people the power to share and make the world more open and connected,” one has to realize that at the end of the day, it is a business.

Facebook has to protect its financial interests, whether that means expanding itself, paying employees or visiting tech conferences. Without money, Facebook has no means of supporting its mission statement.

Why do you think those advertisements on the sides of the newsfeeds are there for? According to http://businessinsider.com, Facebook made $500 million in revenue in 2009; self-service Facebook ads accounted to $250 to $300 million of the total revenue while their engagement ads brought in an extra $100 million. “I do not mind [or blame] Facebook for doing what [it has] to do,” said senior Michael Liu.

Zuckerberg will not be the only one to benefit from this new IPO, either. It will also benefit other shareholders (a.k.a important investors) that help kept Zuckerberg’s company afloat. According to http://cio.com, Peter Thiel, initial investor of Facebook and cofounder of PayPal stands to make three billion with the new IPO.

Facebook’s new IPO raises many questions in a user’s head as he/she tries to decipher Facebook’s true intentions. The simple answer is: Facebook is concerned about making money more than changing the way people communicate, because without money, they have no means of supporting their interests.

The famous saying: “money makes the world go round” applies to businesses, including Facebook. However, Facebook still remains a free service; and many some users remain satisfied with its current growth. “As long as [Facebook] remains free for me to use, then I think Facebook has been making good progress,” said senior Andy Schmitt.