As Facebook secured some investments earlier this year, and invested it towards international growth, the latest news spark renewed IPO rumors.
Of course, no one knows, but the hiring of a CFO from a larger corporation is nothing you do unless you have greater plans. First and foremost, it costs you a bunch of money, secondly, the demands this person has on you by his experience will force the structure needed upon you.
The biggest challenge remains though – to create profitability.
Here is a quoted article from BusinessWeek.
“In April, when Facebook announced the departure of Chief Financial Officer Gideon Yu, the social network said it would look for a replacement “with public company experience.” Facebook found what it was seeking in David Ebersman, a 15-year veteran of biotech pioneer Genentech (DNA).
“David [Ebersman] worked at one of the most innovative and respected [companies] in the world, so he brings a lot to the table when it comes to our efforts to build a lasting, important company,” Facebook spokesman Larry Yu says of the appointment, announced on June 29.
Ebersman’s appointment keeps alive speculation over whether and how soon the world’s biggest social network is headed for an initial public share sale. “We have no plans to go public,” says spokesman Larry Yu. Facebook CEO Mark Zuckerberg was quoted in May saying an IPO remains “a few years out.”
Ebersman, 38, served as Genentech’s CFO for the four years leading up to its $46.8 billion sale to drug giant Roche Holding (ROG) in May. In Facebook’s press release, CEO Mark Zuckerberg noted that under Ebersman, Genentech’s revenue tripled. Zuckerberg envisions high growth for his company as well, saying sales will rise 70% this year. (eMarketer has projected that Facebook’s revenue will grow 20% this year, to $300 million.)”
Read the full article here.
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