Facebook Says It Has No Immediate IPO Plans

On Tuesday, Facebook announced that the company is not planning or having any idea of becoming a public firm or company but is establishing a stock structure which is dual class to make sure the control of voting by the existing owners. A spokesman from Facebook, Larry Yu in an interview said that this stock structure( dual class) is introduced by Facebook to assure its existing shareholders that the control is maintained over the voting related to some issues, and also to assure the company so that it focuses on long term benefits of the company, building a huge business. He also added that Facebook has no idea to become a public company as of now.

One of the analysts of the market said that this step of Facebook in not very surprising as this social networking firm is trying to sculpture itself in some or the other way to Google, that became a dual-class stock structure long ago.

A spokesperson from Broad point AmTech, Ben Schachter, said that Google also did the same thing exactly in the past. This structure helps in protecting the interests of long term against those short-term pressures. He also added that is this dual-class stock structure is not maintained, there is a chance that many of the company’s shareholders will pressurize the company to make business decisions applicable for temporary or short-range benefits at the cost of long term benefits and success which is the major ideology of founders of the company.

This social network company which has got about 300 plus million users signed in has huge investments from various top companies like the Microsoft Company and another investment company from Russia known as Digital Sky Technological Company.

As per a report from Reuters last month, where two persons common to the issue said that the Digital sky company started buying the shares straight away from the shareholders of the Facebook. There is information that Digital Sky Company bought the Facebook shares which are worth of 100 million USD from the employees and the ex-employees of the company, at a share valuation of 16.5 billion USD.

This attempt of Facebook clearly shows that the Company has no plans regarding the IPO plans immediately and hence the company is planning for the long term benefits keeping the short-term profits aside for now.

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