Facebook IPO – Microsoft IS Facebook’s IPO – not the NASDAQ

As Facebook postures to stay independent one angle needs to be explored. The IPO market just hasn’t come back and with looming recession and possible global depression – Microsoft is Facebook’s IPO.

This is an opportunity for Facebook to save face and declare victory (and turn all those employees into millionaires).

What is the exit and legacy for Facebook.? Remember the big end game for Facebook is an IPO (mint employees, investors as millionaires over and over) AND the entrepreneurial legacy of the founding team (relevance in history). Facebook could come out smelling like a rose to employees future employees and investors if they take the money from Microsoft and declaring that as their IPO. Say take $25 billion cash and $25 billion in stock for future employees. It’s the Silicon Valley way.

Everyone gets rich, founders declare victory in setting the agenda in a new paradigm, future wealth creation is preserved, and on and on it can go. It’s almost to good to be true.

The Alternative: risk losing it all in competitive warfare where you’re undermatched and overgunned; employees waiting year over year for an exit via IPO; founders who gets replaced by hostile investors;..the risks can go on and on. It’s about basic risk management.

Facebook should declare victory now and go public with Microsoft – mobilize your employees with cash; help reinvent Microsoft; and compete with Google (or go public with Google).

The going forward alone are risky. The conditions in the market make it risky to go alone.

Author: John

Entrepreneur living in Palo Alto California and the Founder of SiliconANGLE Media

11 thoughts on “Facebook IPO – Microsoft IS Facebook’s IPO – not the NASDAQ”

  1. Alan,
    If the IPO market was open Facebook would have the juice to go public big – imo; that being said what are the chances in the next 5-7 years. hell we’ve been at war in iraq for to many years now and the recession could last another 5+ years…

    M&A is the new IPO and Facebook gets a big payday. If Msft structures it right it could be the IPO for Facebook; what’s worse in silicon valley 7 years of employees counting their paper money (getting restless) or dying from the competitive pressure.

    Facebook needs to go public in some way fast…this could be an interesting way to position it – it’s market reality

  2. You’re spot on. No one at Facebook is going to get “Google-Rich” via an IPO, because, well, they’ll never make as much money as Google.

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