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What Does Facebook's $5Billion I.P.O. Mean For Recruiters?

What Does Facebook's $5Billion I.P.O. Mean For Recruiters?

After filing for its initial public offering in early February this year, Facebook, the world's largest social media network is expected to float on the stock exchange within the next six weeks.

Set to be the 4th largest IPO in American History, it is expected that Facebook's flotation will raise funds of $5Billion for the business which could see the company valued at almost $100Billion.

But what implications does the Facebook IPO have for recruiters?

Director of Just Recruitment Websites, Tristan Neagle, says:

"The key insight about Facebook's flotation is that investment experts believe it will put the value of the business 10-20 times above any normal level based on its current profitability.

This leaves not just recruiters, but the internet community as a whole to wonder what Facebook will do with the 5 billion dollars it raises in order to make the company valuation stick.

The most likely answer to this question is that the vast majority of the money Facebook raises will be invested in the significant expansion of advertising opportunities across the network in a bid to substantially increase profits and therefore live up to shareholder expectations.

Such an investment by Facebook could have huge implications for recruiters, especially those which have used other forms of paid search marketing - such as the Google Adwords platform - to attract candidates and clients to their website in the past.

Facebook's current advertising system is generally perceived by online marketers as clunky and awkward and does not provide businesses with such tangible results as Google's advertising network.

However, with hungry investors to please and 5 billion dollars to spend on the system, this is set to change which means recruiters could see the first really effective and high volume paid search alternative to Google Adwords open up before them in the months and years ahead."


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