E-Commerce Paper Case Study -Facebook

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Private then Public

For years the company resisted both buyouts and taking the company public for instant Viacom a American global mass media company offered Facebook a $ 750 million in 2006 but was turned down and the same year Yahoo! Attempted to buy it for $1 billion but got refused too and it finally decided to become public because it crosses threshold of 500 shareholders according to the Reuters Financial blogger Felix Salmon.

As Facebook finally went public, it had to filed for an initial public offering on February 1,2012 by filling the document with the securities and exchange commission and to ensure the early investor of Facebook would retain a significant degree of control over “Facebook”, in 2009 it has instituted a dual class stock structure which allowed the Earlier investor to control more than the new investor. Therefore after the IPO, Zuckerberg was to retain 22% ownership share in Facebook and was to own 57% of the voting shares.

However times has proven that the IPO went fiasco because the IPO was originally $34.03 and by June 1,2012 the stock was closing at $27.72 and in report during June 6, The investor had lost $40 Billion

Conclusion

In a world where Facebook faces new threats and competition becomes fierce , it will have to stand up from the crowd as it did in the past when it was first introduced but we can notice that Facebook gamble on the mobility which is smartphones and tablets devices where users spends most of the time in it .

Competition

Facebook faces 3 threats coming from: Twitter one of the most popular social networking sites online with over 300 million users which is know for its short micro-blogs or tweets which are limited to 140 characters each

LinkedIn a more business centric networking site, where you can build your professional network here and stay in touch and up to date with others in your profession. Orkut is a Facebook –like social networking site run by Google. It has over 66...
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