Facebook Adjusts Equity Structure to Pave the Way for IPO

The world's largest social networking site Facebook announced an adjustment to the company's equity structure, dividing shares into two classes: A and B. Although the company emphasized that there are no plans for an initial public offering (IPO) at this stage, analysts believe that the change in equity structure is preparing the way for an IPO.

Facebook issued a statement on the 19th of this month, explaining that the adjustment to the equity structure was due to existing shareholders wishing to retain voting control, ensuring the company can continue to focus on building a large business in the long term. Facebook reiterated that this move does not indicate the company is preparing for an IPO.