On Facebook Buying And The IPO

So Facebook is on a shopping spree… This is not necessarily a shocking chain of events. But given the fact that the world is only two weeks away from being able to buy freely Facebook shares on the market, it kind of makes me wonder a bit. Well, just trying to figure out what is the end game, not the first move on the board.

It was the first Instagram for the staggering number of USD1,000,000,000 (give or take). Then it was Glancee. Well, not for that much, but still enough for Facebook to file yet another amendment to its prospect and the SEC.

But why Zuck and the band are doing this?

  1. It is always better to have more than 900Mn+ socialites.
  2. It is always better to have some young, fresh and growing muscle/brain/know-how joining your company
  3. It is always better to be one step ahead of your competitors (or at least the ones you consider as a threat to your market share)
  4. It is always better to make the possible investors believe that investing in FB would have a huge ROI, cause if the company can afford to risk prior to the IPO, chances are that la vie is indeed en rose.
  5. It is always better to be better.

However, the above are all pretty superficial thoughts…

The real reason behind Facebook buying companies is that they are all pretty much leading in what they do in… Mobile.

Yes, that’s right. The keyword is #mobile. It was with Gowalla and now it is with Instagram and Glancee. All three of these companies are on top of their game in mobile socializing. In the long-term, these newly added capabilities will allow scalability beyond the billion user base. On, and did I mention monetization? Just watch!

What are your thoughts on the matter? Use the comment section below!

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