Monday, January 17, 2011

What do you think about Facebook's Private Offering from Goldman Sacks?

Facebook is raising $1.5 Billion via a "private offering" through Goldman Sacks. Today, Goldman Sacks decided to restrict the offering to private investors in Asia and Europe. What is your take on this move from FB and GS? Here's my take.
First things first - why doesn't Facebook just go public now? Because going public has a lot of implications on how a company is run. Mark Zuckerberg still writes code as the CEO of facebook. It breeds a different culture. I don't think he and the company is ready to go public just yet.
I am not shocked by Goldman's decision to not offer in the US. However, I am suprised that a firm like Goldman is engaging in a private offering like this. As a small individual investor, I hate the fact that I cannot participate in this private offering. If I had a choice, whether I bought it or not is a separate question. A lot has gone in to make sure that all investors regardless of size have the same information for public companies. This will get fixed in due time as well.

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