Quote:
Originally Posted by epitome
The limited for private companies is 500 investors before they have to start filing. FB is either there or about to be. Why not go public if you have to file reports anyway?
Congress is looking into changing the law to 2000 investors before having to publicly report.
To get around the 500 investor limit, companies like Goldman setup companies that only invested in facebook, meaning each "investor" in Facebook could really be 500 investors. I think there were some issues with them doing this as it was only done to skirt that requirement but I can't remember.
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The point I was getting at is it's way late in the game for them to offer stock considering they aren't doing anything "new". Considering that social websites have shelf lives that are rather short in investment terms, I just can't see this as anything more than a money grab.
This is not a company that is looking for funding to expand into new markets or products.. It's a company that is already at the top and is looking to do nothing new. They will eventually not be at the top and then what?
The FB guys know this and are just milking the cow one more time before the cow runs dry. Sure there might be some money to be made trading the stock on the short term, but we all know where this is eventually going to go and that's exactly what is wrong with wall street these days.
It's not about funding companies but instead creating money out of nothing for investors and dumping before it crashes. That's not a sustainable market. This is no different than a pink sheet pump & dump because maybe it will be a week maybe two years but FB stock is not going to be anything in the end.