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Facebook Has their Evil Eye on Chomping It’s Way Towards a Mobile Phone
I don’t know exactly what Mark Zuckerburg’s vision was when he came out with ‘The Facebook’ (a minimal viable product) that cost about twenty thousand dollars to get off the ground. However, as the site evolved and grew, so did its advertising revenue. When Facebook was a private company its revenue model was quite simple; with 900 million users in roughly eight years, companies wanted to advertise…makes sense, right? But now, after the stock has trickled down from it’s original $38 dollar IPO (Down near $28 on the day), investors want to know how the company is going to generate revenue. Clearly advertising dollars are down, which makes complete sense, as mobile phone sales significantly out-do desktops and laptops. It’s hard to advertise on mobile phones – fact. Investors don’t give a shit about how Facebook is going to increase revenue and adapt to an ever-changing marketplace – they just want results. Therefore, Facebook has already announced its desire to tap into the mobile phone market and produce its own device. Now that the company has gone public and has an arsenal of billions at its disposal, it makes complete sense for them to move in that direction. How should they go about it? Creating a mobile device isn’t simple, and to make matters worse, Facebook has absolutely no experience in the field. The idea is excellent; Facebook operating on its own phone could do wonders for the publicly traded company. However, with no experience, it will be a daunting task for Facebook to develop a device that has the hardware, and operating system that will run smoothly with the sites social functionality. Research In Motion (RIM) – the producer of the “CrackBerry” is a logical acquisition for Facebook. Or is it? RIM is at a nine year low, however it still has a large consumer base. It is still widely used in the corporate world, because of its email security, sleek look, arguably the easiest keyboard to use, and not to mention, the wealthiest people in the world. Is RIM a good buy for Facebook at this point? Should Facebook wait for the floundering company’s stock to drop even lower, or does it risk another company furtively buying the company. Will RIM continue to flounder, or will it reposition itself and adapt (most likely not)? I think Facebook would be smart to buy it while the stock is at $10.73. Let me know your thoughts. Love feedback!
After the Facebook IPO, Zuckerberg will own 18% of the shares, but control 57% of the votes.
From CNN Money Don’t like how Facebook is run? Who cares? You don’t have a vote. Facebook has two classes of stock. The ones the company is selling the public only get one vote each on matters such as who should be on the company’s board of directors, executive pay packages and company bylaws. The ones Zuckerberg is keeping for himself and his early investors get 10 votes. The result: After the IPO, Zuckerberg will own 18% of the shares, but control 57% of the votes.
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