Well, so here it goes. A big social networking company makes its rendezvous with the stock market. Hey everyone, come be a part of this dream. Become rich. Lets share this greed. So how much greed is enough will always be a philosophical question, but why a company should go public can have some objective reasoning behind it.
I try to find some reasons that hit my peanut size brain as to why will anyone take the company public.
1) Its the IN thing to take a company public :- Why not? You gain the respect of the business community a build a credibility in the market. Hey you, I have Maybach, a private Jet. What do you have? I have a public company. Yikes!!!!!!
2) Need money to expand operations :- Pretty genuine reason. But if a company is making a hell lot of profit, does it give enough grounds for needing money to expand operations?
3) Let me make common public the part of my success story :- well, I am not running a charity institution. Mind you, the first one to benefit out of a company going public for sure will be the VCs needing to take there money out and put it some other place to make even more MONEY.
Reminds me of the ABBA song, "Its a rich man's world".
Well on the same lines, why would one not take the company public? Dude, its no more a private affair. Share holders need an answer for the private jet you took for honeymooning.
Some how it makes more sense to me for a company to stay private for as long as possible and avoid this whole fanfare of going public. Business is for wealth creation. But for whom? For everyone, then I am living in a socialist world.
I am not a business thinker neither a noble prize winner in economics. Just a Techie who happened to be away from coding for sometime now and hence all the thoughts expressed above are nothing more than the ramblings of an idle brain.
I try to find some reasons that hit my peanut size brain as to why will anyone take the company public.
1) Its the IN thing to take a company public :- Why not? You gain the respect of the business community a build a credibility in the market. Hey you, I have Maybach, a private Jet. What do you have? I have a public company. Yikes!!!!!!
2) Need money to expand operations :- Pretty genuine reason. But if a company is making a hell lot of profit, does it give enough grounds for needing money to expand operations?
3) Let me make common public the part of my success story :- well, I am not running a charity institution. Mind you, the first one to benefit out of a company going public for sure will be the VCs needing to take there money out and put it some other place to make even more MONEY.
Reminds me of the ABBA song, "Its a rich man's world".
Well on the same lines, why would one not take the company public? Dude, its no more a private affair. Share holders need an answer for the private jet you took for honeymooning.
Some how it makes more sense to me for a company to stay private for as long as possible and avoid this whole fanfare of going public. Business is for wealth creation. But for whom? For everyone, then I am living in a socialist world.
I am not a business thinker neither a noble prize winner in economics. Just a Techie who happened to be away from coding for sometime now and hence all the thoughts expressed above are nothing more than the ramblings of an idle brain.
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