10 Things Facebook Should Spend Its IPO Money On

 By 
Pete Pachal
 on 
10 Things Facebook Should Spend Its IPO Money On

Facebook stands to make at least $16 billion on its initial public offering (IPO). That's the most any tech company has ever made from an IPO, and it'll give Facebook unprecedented control over its own destiny.

It'll also instantly have a ton of capital. There's no shortage of projects that Facebook can and should tackle head-on with its newfound cash, but it needs to prioritize. Everything from mobile to ecommerce to pure research and development are ripe for investment, but the company can't do everything at once.

An IPO also changes a company fundamentally. It now answers to shareholders, and those shareholders will expect their investment to grow substantially over time, both short-term and long-term. Facebook needs to choose the projects that will pay off for its investors while still keeping its users happy.

We've picked out the top areas we think Facebook should target when it comes time to start shoveling itself out from under the mountains of money it'll soon be buried in. Let us know what you think of our choices -- and how you would spend that $16 billion if you were in charge of Facebook -- in the comments.

What Is an IPO?

What exactly is an IPO? What are the risks to a company in going public? What are the legal requirements?

If you find the business terms and market lingo confusing, check out our explainer video, which breaks down an IPO in plain language.

[brightcove video="1615975106001" /]

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