Goldman Sachs and a Russian investor have invested about $ 500 m in a deal with Face-book that values the company at $50 billion. This transaction has topped face-book to Time Warner, yahoo. ebay etc. The deal is all set to magnify face-book’s global influence and lead in the race. The deal money will provide enough of opportunities to acquire new employees develop new products and continue new acquisitions without being a public sector company. This deal may push the company to go public despite resistance from its executives. However, face-book’s CEO Mark Zuckerberg is reluctant to let his company go public or sell it. As opined by Chris Sacca, a former Google employees and Twitter investor, face-book has become a real business and investors are keen to use the available opportunities to make the best of it. Goldman’s involvement into the deal strongly suggests its strong position to take Face-book go public making the deal prominent and lucrative …show more content…
Being a controlled company which is free from nominations, the company has classified its shares into three categories namely class A shares which would be reserved for the public with a value of 1 vote each share and class B of shares would be reserved for company insiders which values to 10 votes per share and lastly the CEO of the company Mr. Zuckerberg hold 57% of the total voting shares. He has control on the majority of votes and final veto power on who gets elected to the board. This will never change irrespective of the company going public or not. Due to strong hold on the voting power, the CEO has key decision making power in the company (Kaplan …show more content…
Soon it will be seen that mobile will gain more prominence than desktops as far as face-book usability is concerned. Critics have complained that face-book application runs slow on mobiles and this was admitted by the young CEO Mr.Zuckerberg saying that the same issue is being resolved and rebuilt in the latest smart phones such as Apple iOS mobile platform. The CEO however disclaimed the rumors that face-book is planning to invent its own mobile phones and said that the company has no intentions to enter into mobile business (Evangelista & Temple