The Benefits of Facebook Going Public

After seven years of compounding successes, the touted social network is moving into the public domain. But a public Facebook could benefit more than its executives’ wallets. Facebook, that near-and-dear social network with its own movie, could file its papers to go public as early as Wednesday, according to The Wall Street Journal.

Facebook public offering | BCBusiness
Facebook could file to go public this week in the largest initial public offering of the decade.

After seven years of compounding successes, the touted social network is moving into the public domain. But a public Facebook could benefit more than its executives’ wallets.

Facebook, that near-and-dear social network with its own movie, could file its papers to go public as early as Wednesday, according to The Wall Street Journal.

The initial public offering is expected to raise as much as $10 billion, which would put Facebook well ahead of Google’s 2004 IPO, which raised $1.67 billion. The anticipated amount makes Facebook’s IPO the most notable U.S. company public offering of the decade.

The company’s expected valuation is around $100 billion, which is approximately half of Google’s ($180 billion) but is still behind Apple’s massive $415 billion valuation.

However, the most significant aspect of the IPO is Facebook’s ability to create more jobs. The topic even came up over the weekend during the CNBC debate at the World Economic Forum in Davos, Switzerland.

In the seven years since the site began in founder Mark Zuckerberg’s Harvard dorm room, Facebook has accomplished more than just changing the way we communicate. The network has collected 800 million users, hired 3,000 employees and created some 450,000 spin-off jobs in the U.S. and Europe (even some here in Vancouver, as local developers get in on the Facebook app market).

The hope is the company will repeat its pattern of success, which could benefit more than the tech sector in an anemic global economy.