$500 Million Deal Could Ensure Facebook Financial Transparency (And Public Options)
If more than 500 people opt to accept those deals, U.S. Securities and Exchange Commission regulations require Facebook to either make an official public offering or at least divulge its records. Various outlets also contend that Facebook has, in typical clandestine fashion, disclosed to potential buyers from Sachs that the 500-investor threshold will be surpassed this year. CNET reports, "Basically, [Facebook] is acknowledging that about 120 days into next year -- by April 2012 -- it'll be forced to open up the books."
The recent Mark Zuckerberg movie shoved the site, its origins and secretive practices into a glaring public spotlight, so the unfolding drama should be extremely entertaining to watch (although it might be a little agonizing for a couple folks named Winklevoss).