2012 for Facebook IPO: What do you think?

Previously we have reported to you that Facebook has had a large sum of money invested in it from two companies, Goldman Sachs ($450 million) and Digital Sky Technology ($50 million). This has brought the overall value of the company up to $50 billion.

The plan for Goldman Sachs was creating the ‘Special Purpose Vehicle’ to raise even more money for Facebook. Since the investments, as Ben Parr of Mashable rightly points out, there are some currently unanswered questions. With the investment SEC regulations should kick in, can they allow this move?

If you are wondering who the SEC are then we can tell you. They are a regulatory group that are required to step in when a company with 500+ shareholders. Once the SEC are involved, they collate all of the shareholders earnings and then publish them, once they are published, they are public knowledge. The acronym stands for ‘The Securities Exchange Act’ and they were formed back in 1934. This is probably something that Facebook could do without at this time.

You may be wondering about Facebook’s reluctance to disclose their figures. The reason behind it is to give them more time to prepare itself for IPO, this isn’t the first time that Facebook have caused a delay. You may now be thinking, not another acronym, well this one stands for Initial Public Offering. IPO means that a company is becoming transparent by publicly releasing common stock or shares for the first time.

For more information on Facebook’s IPO, head over to Mashable.com and read through Ben Parr’s article. This all makes perfect sense from Facebook’s perspective although the SEC just isn’t going to like the setup with the ‘Special Purpose Vehicle’.

What do you think of Facebook’s recent investments? Let us know your thoughts on this in comments below.