Could Facebook IPO help it dominate Google?
Influx of cash could deliver more users, a move into China, new tech
Computerworld - With the Facebook initial public offering (IPO) now official, industry and financial analysts say that a huge influx of cash could enable the social networking company to topple Google from its dominant position in the online world.
Facebook had been expected to file its IPO papers with the U.S. Securities and Exchange Commission this week, and it did just that late yesterday afternoon. Analysts and potential investors were eagerly awaiting what is one of the largest IPOs in recent years.
With an expected valuation of $100 billion, financial analysts say the IPO is worth about $5 billion. That's a big potential war chest for a company that has been fighting for social networking users and advertising dollars with the largest Internet company on Earth - Google.
Given the popularity of its search engine, along with services and products like Google Maps, Android and Chrome, Google obviously is no slouch: It has 32,000 employees around the world and $37.86 billion in annual revenue. That's $1.166 million per employee in revenue.
But Facebook, with just 3,000 employees, pulls in $3.8 billion in revenue; that's $1.8 million in revenue per employee.
"Facebook has 800 million users," noted Dan Olds, an analyst with The Gabriel Consulting Group. "How many companies have 800 million anything? The thing that's interesting is that Facebook is profitable and solidly profitable. And an IPO is a huge step for any company, but it's the validation for Facebook, their business and their social networking model."
Facebook and Google are increasingly in each other's wheel house.
Just this past year, Google launched Google+, its own social network and a new direct competitor to Facebook. (Just last week it made Google+ more available to teens, another move to broaden its appeal.) And Google CEO Larry Page has said he plans to integrate Google+ social features into the company's wide range of services and products.
With a lot of new cash, Facebook could make a lot of moves. Olds wonders whether Facebook would try to buy Yahoo, which has been struggling, or even Twitter.
- Could you quit Facebook for 99 days?
- Facebook is a school yard bully that's going down
- EPIC says Facebook 'messed with people's minds,' seeks FTC sanctions
- 7 things you need to know about Facebook's mood experiment
- Facebook emotional manipulation test turns users into 'lab rats'
- Facebook tries to stop Snapchat drain with Slingshot
- TMI! Facebook moves to stop over-sharing
- Inside Facebook's brilliant plan to hog your data
- Facebook shows mobile app developers the money with new ad network
- Facebook unveils anonymous app log-ins
- How Network Connections Drive Web Application Performance Users around the globe, on all sorts of devices, expect Web applications to function as seamlessly as desktop applications. This paper discusses the...
- SIP Migration: Addressing CIOs' Concerns Recent data from IDG Research shows that many IT executives are counting on SIP to help them meet employee efficiency and customer experience...
- SBIC: Transforming Information Security This report combines perspectives on technologies with experience in strategy to help security teams navigate complex decisions regarding technology deployments while maximizing investments.
- InfoTech: Cloud File Sharing Organizations are increasingly turning to cloud file sharing solutions to meet end-user's needs for a lightweight and effective collaboration tool. In this report,...
- Top 4 Digital Signage Fails Join RMG Networks for a look at four of the most common reasons digital signage fails in corporate businesses. Learn about strategies to...
- Mastering the Art of Mobile Content Management Mobile device usage in the enterprise has skyrocketed in recent years, and it continues to escalate. All Web Apps White Papers | Webcasts
Computerworld has launched its annual search for outstanding IT leaders who align technology with business goals. Nominate a top IT executive for the 2015 Premier 100 IT Leaders awards now through July 18.