The FaceBook IPO - Essay Example

The rate of growth and the large number of users of the social network make Facebook a successful story. With over 900 million subscribers, the company has attracted tremendous revenues from the adverts placed on the social site. The company’s IPO which will formally transform it into a public company raises concerns for the users of the site.

Expected Changes on Users

First, by going public, Facebook users fear threats to the privacy of their information. A public company is expected by SEC to make public its operations and business hence this might result in the disclosure of subscribers' information.  Moreover, by selling their stocks publicly, the company’s innovation sector might be affected (Hinchcliffe 25). With this, the company will have a large management structure which could impair the level of innovation and hence reduce the development of new products that are demanded by the users (Healey 13). On the other hand, the IPO will assist the company in acquiring more capital that could improve the level of innovation and improvement the infrastructure which would therefore translate into better user services.  How innovation will be unveiled by the company will also change to protect the users from hackers.

In addition, the IPO will imply that the company’s culture has to change (Healey 14). A public company has to adhere to the several regulations of the commission in terms of its management and the manner of operation. This will then affect service delivery to the users who might expect delays in launching new products or brands.