Gideon Yu, Chief Financial Officer, Leaving Facebook

Facebook plans for IPO

Gideon Yu

Online social network Facebook has confirmed that Gideon Yu will be leaving the company. Yu has been Facebook’s chief financial officer since 2007. Facebook also confirms that its goal is to be on track to file for an initial public offering.

Company outgrows Yu

Yu has a history of helping young companies. He previously worked for Google and Yahoo. His recruitment to Facebook in 2007 was highly touted. He helped the company raise more than $500 million in cash advances from investors. However, now that Facebook is planning an IPO, it is searching for a CFO who has experience running a  public company.

New business plan

During his time working for Facebook, Yu sought venture capital and other types of funding for the quickly growing company. Rumors have been floating around for a while that the company was not pulling in enough funding. Now, with the social network’s membership quickly approaching 200 million, the company must evaluate how to continue to fund hardware and personnel.

Details

Facebook says it is using Spencer Stuart search firm in its quest for a new CFO. Although going public during a recession is a risky move, the growing company might be making the best choice. With such rapid growth and deteriorating options for venture capital, it might be the only way for the company to stay in business.

Still growing

Facebook started in 2005. The company made $210 million in revenue last year. It is expected to make $230 million this year. The company started as a social network that was only available to college students. However, it expanded to allow high school students to join shortly thereafter. Now, Facebook is available to anyone, and it appears everyone wants in.

Big investor

Microsoft invested $240 million in Facebook in 2007. At the time, that gave Microsoft a 1.6 percent stake in the company. However, Facebook’s valuation has decreased considerably as it has struggled to find venture capital, sell advertising and keep up with its mushrooming membership numbers.