But hey, in the whole process, where is the user? Wasn’t facebook suppose to be “user-centric”?? We all now what happens if investors run companies. And then we also know how clueless companies are if they are run by founders (read google). So facebook should do something different. Something new. Going the IPO route is very old-school and not fb like. After all the stock exchange won’t autopost on FB if I buy FB (yes that’s the ticker they are aiming for).
The company should raise money through its user-base and let them trade the shares on facebook. How about that?? 500 million users can each contribute $10 to raise $5bb. Given wha tpeople spend on online games, FB credits etc… most of the userbase should be on board with a $10 share price. A lottery system can be used if number of applicants are more than 500mm. There can be some flexibility here in terms of max share per user – say 5 or 10. All users should be given stock-credits which could be later traded on the website. And just like the exchange, prices would be determined by stock-credit trading. The big investors can then jump in here and trade FB credits for FB stock-credits. And about that conflict of interest, well an SEC app on fb platform can take care of it.
Trading can be 24×7. No middlemen involved. And given the userbase, there would be ample liquidity – across the globe. Voting rights will also flow to the share holders. And management releated polls can be easily done on fb platform.
Shareholder meeting can be done online, implies less expenditure on travelling and renting hotels etc… Company-Investor meetings too can take place online with ease. All on the FB platform.
Am i missing something here or is facebook just another offshoot of the capitalist society.