Everyone had their fingers crossed. There were a ton of people that were willing to purchase as many Facebook stocks as they could get their hands on. This was a great thing that for Mark Zuckerberg, but it didn’t turn out as expected. This IPO was reasonably priced, but it still failed to do what people expected it to do. There are lots of services stimulating the Facebook economy, such as services that let you buy Facebook likes, but this money never passes through Facebook’s accounts. It doesn’t seem to matter, however, because Mark Zuckerberg is still rich. His fortune still remains intact.
Posted By: Drew Hendricks on May 5, 20120
Lots of large companies have invested in Facebook for advertising purposes. This is why Zuckerberg was already on top long before he decided to go public. It was the millions of Facebook fans that propelled a nation to consider this as a marketing empire. There are almost a billion registered Facebook users. This, coincidentally, has been what gave Zuckerberg his billionaire status at such a young age.
Over time Zuckerberg has actually gotten away from programming and moved into managing the company. He is rich because he had the foresight to buy up others sites like Instagram to limit his competition. This is what has continued to keep Mark Zuckerberg on top.
The failed IPO wasn’t a real surprise to many. Facebook has been around for a long time. It is one of those companies that would have made it better as a publicly traded stock when it was white hot. People have wanted a part of it long before numbers like 96 billion started getting thrown around. It was hard to measure this worth, however, because it was not public during these times. There was just a buzz going around. This buzz would eventually get more and more companies to invest in it. This would also become the perfect bridge for companies to get to customers.
Advertising on Facebook gave customers something else that 30 second television commercials or print media ads could not do. It gave companies a word of mouth promotion technique that was unparalleled to anything else in the world. This is why Zuckerberg continues to smile all the way to the bank.
At this point Mark Zuckerberg is hardly in a place where he would really need any kind of money. It is true that a successful IPO could have put a lot more money into his bank accounts. The successful transition from private to public was actually more of a status symbol for the company. Success with the stock world would have put him in the company of others that like Apple, Cisco, General Electric, and Microsoft. All of these companies have reached the$500 billion dollar mark. Facebook was a long way from this, but the company was being appraised for close to $100 billion. This was an obvious sign in the right direction. The fact that the company failed puts the Zuckerberg in an unstable situation. It becomes hard to find out what he will do next.
Mark Zuckerberg has money and everyone knows this. He didn’t need to go public to get rich. The IPO failed more so because everyone else wanted to get rich quick. People were buying and selling with the intention of making a quick profit on the first day of trading. The Facebook franchise didn’t become a success overnight. There should be no surprise that the public success of this organization would not be an overnight success either.
As time progresses Zuckerberg will be able to bounce back from this. He has more than enough money to make more investments and continue to build Facebook. Zuckerberg has money to spread around to lots of investments.