When Facebook went public on 18 May 2012, few could have predicted the tumultuous journey ahead for the social networking giant. From its rocky initial public offering to its evolution into Meta Platforms, Facebook’s story is one of remarkable growth, unprecedented challenges, and ambitious reinvention.
The rocky road to going public
Facebook’s IPO was one of the most anticipated public offerings in tech history. The company priced its shares at $38, valuing the company at $104 billion—the largest valuation for a newly public company at that time. Technical glitches plagued NASDAQ on the first day of trading, delaying orders and causing confusion among investors. Within weeks, the stock had plummeted below $30, and by September 2012, it had fallen below $18.
Critics questioned whether Facebook could effectively monetise its growing user base, particularly as users were rapidly transitioning to mobile devices. At the time of its IPO, Facebook had minimal mobile advertising revenue—a concerning weakness for a company whose users were increasingly accessing the platform via smartphones.
The mobile pivot
Facebook’s post-IPO turnaround began with CEO Mark Zuckerberg’s decisive pivot to mobile. The company aggressively rebuilt its applications and rapidly expanded its mobile advertising capabilities.
By the third quarter of 2013, mobile advertising represented 49% of Facebook’s total ad revenue. The company’s stock rebounded, finally surpassing its IPO price in July 2013, and continued climbing as Facebook demonstrated its ability to generate significant revenue from mobile users.
Expansion through strategic acquisitions
Facebook’s growth strategy following its IPO included several high-profile acquisitions:
- Instagram (2012, $1 billion): Acquired just before the IPO, Instagram grew from 30 million users to over 2 billion monthly active users.
- WhatsApp (2014, $19 billion): This messaging platform acquisition expanded Facebook’s global reach.
- Oculus VR (2014, $2 billion): This purchase signalled Zuckerberg’s early interest in virtual reality—a vision that would eventually evolve into the company’s metaverse strategy.
These acquisitions transformed Facebook from a single social network into a portfolio of platforms. By 2016, Facebook had become one of the most valuable companies in the world.
Confronting trust and privacy challenges
From 2016 to 2020, Facebook faced unprecedented challenges, including the Cambridge Analytica scandal, concerns about election interference, and content moderation issues related to hate speech and misinformation.
These crises resulted in Zuckerberg testifying before Congress and a $5 billion FTC settlement. Despite these challenges, Facebook’s business model remained remarkably resilient, with continued growth in revenue and users.
Rebranding as Meta
In October 2021, Zuckerberg announced Facebook’s parent company would rebrand as “Meta Platforms,” reflecting a strategic pivot toward building the “metaverse”—an immersive, interconnected virtual environment.
This ambitious transformation represented the company’s biggest bet since its mobile pivot. Meta announced plans to invest billions annually in developing metaverse technologies, including virtual reality, augmented reality, and the digital infrastructure needed to support these experiences.
Navigating new challenges
The years following the Meta rebrand brought fresh challenges, including Apple’s privacy changes affecting advertising targeting, competition from TikTok, economic headwinds leading to revenue declines, and intensified regulatory scrutiny.
Meta responded with a focus on efficiency, streamlining operations while continuing to invest in AI and metaverse technologies. By 2024, Meta had broadened its strategic focus to include artificial intelligence alongside the metaverse.
Conclusion
Looking back from 2025, Facebook’s evolution since its IPO represents one of the most dramatic corporate transformations in modern business history. From a single website focused on social connections, the company evolved into a diversified technology conglomerate with interests spanning social media, messaging, virtual reality, and artificial intelligence.
This journey has been marked by remarkable business success—with revenue growing from approximately $5 billion in 2012 to over £140 billion by 2024—alongside persistent challenges related to privacy, content moderation, and regulation.
As Meta continues evolving beyond its Facebook origins, the company that once aimed to “make the world more open and connected” now pursues a broader vision of building technologies that help people connect, find communities, and grow businesses.
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