According to people familiar with the process, Facebook Inc. is planning to open a sales office in China, aiming to work in cooperation with local advertisers. Such a step will provide the company with the opportunity to set foot at the territory of a country, where the social network services are still banned for about 1.35 billion users. Opening an office there would be a major step for the company, as China remains one of the few countries where Facebook does not operate.
The Vice President of Facebook Inc. – Mr. Vaughan Smith explained in an e-mailed statement, which was cited by Bloomberg: “Today, our sales team in Hong Kong is supporting these Chinese businesses, but because of the rapid growth these businesses are achieving by using Facebook, we are of course exploring ways that we can provide even more support locally and may consider having a sales office in China in the future.”
Facebooks Vice President, however, refused to make any comments on the eventual location of a companys office in China. Mr. Smith also did not reveal how soon the company plans to open such an office.
One of the people familiar with the matter, who asked not to be named because the process is still not public, explained that Facebook Inc. could open an office situated in China within twelve months in order to meet the increasing customers interest on the territory of the country.
Nevertheless, the plans of Facebook to open an office in China, points to the fact that the companys relationship with the country is improving. In addition, if the company opens an office in the country, this step would put it closer to the government officials, who are responsible for approving the social network services in China.
However, as reported by Bloomberg, the Managing Director of China Market Research Group – Mr. Shaun Rein commented: “The government is still quite concerned about social instability. I dont think you are going to see any access for Facebook anytime soon.”
Some of the people with knowledge of the process said that the company is currently negotiating to lease space in Fortune Financial Center in Beijing. Another person close to the matters reported that Facebook Inc. has not yet decided whether to hire full-time employees or contractors for an eventual sales office.
Facebook Inc. was 4.52% up to close at 59.83 dollars per share yesterday, marking a one-year change of +124.25%. According to the information published on CNN Money, the 40 analysts offering 12-month price forecasts for Facebook Inc. have a median target of 80.00, with a high estimate of 90.00 and a low estimate of 60.00. The median estimate represents a +33.71% increase from the last price of 59.83.
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