Facebook’s Future

IPO, Timeline and Open Graph--what Facebook is soon becoming

by Published: Feb 22, 2012

Eight hun­dred forty-six mil­lion users later, Facebook is now ready to step it up to the next level. That next level includes being a pub­lic com­pany, like its rivals Google and other tech giants.

With the IPO, Facebook is set to become worth nearly 100 bil­lion dol­lars, and with the Initial Public Offering, Facebook is mak­ing more changes.

Recently, Facebook has announced new changes to pro­files called Timeline. This new design is made to act as a way of plac­ing major life events inter­mixed with your daily updates to show­case your life. The change in setup is part of Facebook try­ing to increase user usage of its site.

Not every­one has had to accept Timeline yet since it is grad­u­ally being insti­tuted across the user base.

“I still have the older ver­sion of Facebook, but I like the idea of being able to include your major life events. However, I think it’s too much work to go back and input events from the past,” Preston Taylor, Ferris sopho­more in pre-pharmacy, said.

Currently, Facebook has 483 mil­lion active users that go on at least once a day. All those users have uploaded 100 petabytes, which for those who are not tech savvy is 100 mil­lion giga­bytes of pho­tos and video. There is an aver­age of 2.7 bil­lion “likes” and com­ments a day.

One chal­lenge Facebook faces with its IPO is the prospect of growth. In the U.S. and U.K., Facebook already has a 60 per­cent mar­ket pres­ence so investors ques­tion how much the com­pany will increase its value when it’s already the pow­er­house that it is.

At the same time Facebook announced its IPO, they announced an expan­sion to their Open Graph pro­to­col. This early sys­tem is how you can hit a “like” but­ton on third-party web­sites and the activ­ity is reflected back on your profile.

The expanded ver­sion of Open Graph involves adding a third-party website’s app to your Timeline and the activ­ity on the other web­site is vis­i­ble to your friends. For exam­ple, if you watch a movie on Netflix, lis­ten to music on Spotify, or pin some­thing on Pinterest, it will all go to your Timeline.

In response to this new cross-web inte­gra­tion, Hannah Picklo, junior in health care sys­tems admin­is­tra­tion, said, “I don’t mind it. For instance, with Spotify I like that I can see what music my friends are lis­ten­ing to and I can check that out and see if I’d like it too. Though when every­one posts every lit­tle thing they find on the Internet, it can be a bit excessive.”

The IPO for Facebook has opened up its finan­cial records, show­ing that the com­pany has been prof­itable for the past three years, includ­ing a one bil­lion dol­lar profit last year. No one knows if the IPO will be the start for investors to be prof­itable or another web com­pany bust, just on a much larger scale.