Facebook Goes Public
February 3, 2012, 7:00 AM
SIOUX FALLS, SD -
Facebook is going public and the company is doing it in a big way; filing the largest IPO ever at $5 billion. But this big step is leaving many with questions about the social media giant.
"It could change how it works, and if people have to pay for it, and then, well of course, the number of people using it and well how people connect," Facebook user Melissa Petrie said.
Facebook, however, is not making the move to make users unsure, but to make Facebook better.
"They want to improve their company. They want to make their company better and more accessible, more appealing to the general public. They need money to do that." investment advisor Neil Graff said.
And money is what they will get. It's said that if Facebook goes public, a group of their 3,000 employees will become instant millionaires.
"If they were there back at the inception of Facebook in 2006 they will be undoubtedly have been receiving company stock. Because of this, there will be hundreds of millionaires," Graff said.
Even though Facebook is already a profitable business, the IPO will just act as fuel for the company to keep going.
"They need money to fund its growth to be the biggest and best company. The only way to do that is have more money and funding resources," Graff said.
Growing into an even larger company is actually something that will only help them more.
"Being so well known will help them because more people will go out to find the shares," Graff said.
Facebook going public not only leaves questions about the changes but also the question of who will have access to that stock.
"The initial shares that are issued will only go to the clients of the underwriting company. So there is a probably a very low probability that any people in our general area will get those shares," Graff said.
After going to the underwriting company, the stocks will then be available to the general public on the New York Stock Exchange.
Those underwriting companies are Goldman Sachs, JP Morgan Chase and Morgan Stanley. How much each share will cost is still up in the air at this point.
This article has been revised to reflect the following correction:
The value of the IPO was corrected.
© 2012 KELOLAND TV. All Rights Reserved.
9/28/2015 11:59 AM
The letter, signed by Deptartment of Education Secretary Melody Schopp, lists eight reasons for the decision not to continue to steer federal grant mo...
9/28/2015 6:05 PM
Mid Central got $16.5 million in federal money through the state in the last ten years to administer the GEAR UP program to encourage Native American ...
10/2/2015 3:14 PM
Phelps administered the GEAR UP program which prepared and encouraged Native American students to enroll into higher educaton.
10/1/2015 4:48 PM
Sir Elton John will be surrounded by beautiful flowers during his stop in Sioux Falls.
9/29/2015 6:10 PM
Mid Central Educational Cooperative dispersed the grant money since 2005 to two organizations to run the GEAR UP program, under business manager Scott...