The Pro’s and Con’s of Facebook’s IPO Filing [Part 3]

1. No more privacy

Facebook has prided itself on secrecy and not releasing the next big thing until it is ready. Due to how companies are required to report on the stock exchange Facebook will be required to be more open about what they are doing. Though we believe Facebook will be able to stay on top of what they are doing in the long term it could slow them down due to the amount of reporting they have to do as a publicly traded company.

2. Limits on planning

This is what we were alluding to with the previous point. With the reporting that Facebook will have to do there will be potential that they could lose sight of long term planning. The key of Facebook’s success (as much as it annoys some) is that they are constantly innovating as a website. This means that if they aren’t careful they can no longer be relevant to the online community.


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