It might surprise you to learn that your Facebook account, considered to be very personal by many, is making someone you’ve never met and never will, a lot of money. Facebook is so much more than a free means of social media, it’s a complex business, and there are those who would challenge if it is even free.
Facebook is much more often viewed as a social media outlet, rather than a thriving business entity. But the company behind the world’s popular website is a very interesting example of corporate finance at work. Facebook makes a great deal of profit off its “free” users. Facebook predominately takes in it’s revenue from the enormous amount of advertising on their site. Third party companies are willing and eager to advertise on your homepage, especially if their products are tailor made for you.
With its IPO scheduled to take place within 18 months, Facebook is following the example of tech industry giant Google by waiting as long as possible before going public.
Analysts predict that Facebook will launch with one of the highest IPO’s ever for an internet company.
