Facebook Inc (NASDAQ:FB) intends to achieve global connection via the Internet probably quite unlike what other companies have managed to do. For awhile there has been talk of what is generally referred to as globalization and I think that if FB succeeds with its goal, it will have achieved in making the entire world one huge village where people can get in touch with each other regardless of how far or near they are to one another. This is what its CEO Mark Zuckerberg has said. The question is; how will this impact on the shareholders and investors?


Image is from www.techcrunch.com

FB Recovery from Poor Post-IPO Period

There are very many places in the world which are as yet unable to get access to the Internet. It is for such people that FB embarks on this latest venture will hopefully help it achieve its goals. This is a company which has gone through a torrid time ever since it issued its IPO, and in certain quarters, the wisdom of such a decision has been called into question. As a publicly-traded company, FB must work hard to make money for its investors and shareholders. This latest venture is designed with this objective in mind, especially for the long term.

FB Working with Partners

However, it is critical to point out that FB is not embarking on this venture all on its own. It is doing this with the help and assistance of six other telecommunication and mobile companies. What these companies are tasked with is to design technologies which make it easier to compress new data, while improving network infrastructure and coming up with better business models than what is already in the industry. The intention is to make it much easier for everyone to buy smartphones, while accessing data at much cheaper rates than what is the case right now.

If FB is to survive into the next generation, it needs to invest in improving the condition of its already existent user base. One way of doing this is by helping the current and prospective users to buy smartphones and other mobile devices which make it easier and faster for them to access the Internet. There has been some concern to the effect that FB has embarked on this latest venture with the intention of increasing its user base. I don’t see any problem with this since FB has to do everything it can to continue staying relevant and attractive in this hostile environment.

FB’s Finances to Benefit from this deal

The potential of such a venture in helping Facebook Inc to earn increased and much higher revenue is quite huge. Moreover, this is something which will not only contribute significantly to FB’s bottom-line. It also has the capacity of making a major contribution to the social aspects of our lives. Companies which survive and continue operating for many generations are those which have a better way of doing business, while still working on ways of changing the world. I note that FB has found ways of balancing both avenues well for its benefit and that of its shareholders.

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