Zuckerberg’s Complaint

Facebook last week announced its Initial Public Offering — exactly the event I said wouldn’t happen in one of my controversial predictions for 2012. But I’m sticking with my call on this one since we’re 2-3 months from the actual event and a lot can happen to screw things up between now and then. I’m pretty sure Facebook shares will be trading sometime this year, I just don’t think the company will have a traditional IPO.

Companies go public for three reasons: 1) to raise capital for various corporate purposes like acquisitions and paying down debt; 2) to secure the wealth of founders, giving their kids something to fight over, and; 3) because they have over […]

Prediction 5: No IPO for Facebook

Companies go public for many reasons but the two that are most common are: 1) to raise capital for further expansion, and; 2) to secure the wealth of the founders. Some companies go public for different reasons, like Microsoft’s IPO back in 1986 that was literally forced by excessive secondary trading of company shares. Gates and Shirley decided to accept the burden of going public because it wasn’t all bad, but they didn’t seek it because they didn’t need the money.

Neither does Facebook.

SEC rules say that once a company has more than 500 shareholders it has to file the same financial disclosures as any public company, which is a pretty big administrative burden and a […]