[citation][nom]DRosencraft[/nom]Whatever happened to common sense in the market? Or common sense in capitalism? Why is it that as soon as anyone throws out an idea and claims it's the essence of capitalism it suddenly becomes taboo to point out the fallacy of their claim? I ask this because there was a time when the idea behind a public offering of a company on the stock market was done solely because you need the cash flow to build your business. It was an option afforded to companies who had leveraged as much private funding as they could and need more investment to help grow their business. Facebook had plenty of money. Very little of the money they made from their IPO, their $16B, seems to be actually targeted towards in any way doing something Facebook couldn't do before. In fact it seems more like they're trying to find ways to build themselves to justify the IPO. They had tons of cash already, so their IPO at the very least was flawed in its justification, IMHO. Now, I don't know about Corsair's finances, but they make great products. I would hope, for their sake and for the sake of our system of economics, Corsair and any other company looking to make an IPO does so based on the idea that they need to leverage plans they have for expansion, not for the sake of just piling money as high as they please and decide afterwards they need to justify it for their newfound investors. That is the lesson that should be learned here. Because Facebook has no stated plans on the horizon that will noticeably change their situation. And with no such plans, I don't foresee their stock price getting back to that $38 price (really $42.50 was the first actual trades) from the day it launched.[/citation]
Well just a few reasons they might have to go public: Liquidity. All those "insiders" that actually made some money, that also includes all the employees that where either given stock or offered stock in the company for last few years, their stocks were basically worth nothing till they went public. In general, stock in a public company is much more liquid than stock in a private enterprise and has a result easier to sell and buy.
This in turn can lead to Motivation and/or loyalty. A lot of employees are given or offered stock options before a company goes public, sometimes years before, so when they finally do they usually make a good profit which can connect an employee’s financial future to the company’s success.
Just a few reasons why. Mostly Facebook lost out in mho because well they really do not offer any real product or service as of yet anyway; and the market value when the ipo hit reflected that. Reality is reality.