[papa]

When Google was considering the timing of its IPO back in 2003/2004, I remember reading about an SEC regulation that requires private companies to make regular public disclosures (10K filings) if they hit certain shareholder and asset thresholds. There was some speculation that this regulation may have played some part in forcing Google to go public sooner rather than later.

I don't know where/how it figures into Facebook's thinking, but it may be that the same issue may arise in which a private Facebook might face some of the public scrutiny a public corporation might and decide that if they must disclose, they may as well reap some of the benefits of going public.

For what it's worth, here's the specific reporting obligation I'm referring to as noted in a Wikipedia article (since I can't find it on the SEC website):

"Companies with more than $10 million in assets whose securities are held by more than 500 owners must file annual and other periodic reports, regardless of whether the securities are publicly or privately traded."

http://en.wikipedia.org/wiki/Form_10-K

[thinkcomp]

Fenwick and West has long since convinced the SEC to waive this requirement for Facebook's benefit. Why such a waiver is in the public's interest, I don't know.

[mattmaroon]

Well, I don't think the requirement itself was in the public's interest, especially in the era of Sarbanes Oxley. Forcing a company to go public could be extremely harmful.

[papa]

Thanks for the info. Just goes to show the value of a good lawyer!