Facebook IPO may be filed next week, targeting a $100B valuation, reports say

By on Jan 28, 2012 in Business, Internet, Technology, United States Comments

Facebook is being set to file for its initial public offering (IPO) as early as next week, with the social network reportedly worth between $75 billion to $100 billion, if the negotiations will push through.



Facebookco-founder and CEO Mark Zuckerberg
Image Credit: Paul Sakuma/AP

According to Wall Street Journal on Friday, January 27, 2012, people familiar with the situation told them that Facebook may file the IPO documents with the Securities and Exchange Commission (SEC) this coming Wednesday, February 1.

As noted in the report, an unnamed source identified Morgan Stanley to lead the deal with Facebook and could raise $10B in a share sale, while rival Goldman Sachs may also play a vital role in the IPO.

The report comes only days after Facebook, whose users had a last count of over 800 million worldwide, announced that Facebook Timeline will be mandatory for all users over the next few weeks and users will be given a week to preview it before it will be permanent.

Meanwhile, Facebook IPO was said to have a target date sometime between April and June, with the internet company’s revenue coming from ads posted on walls, which according to research firm eMarketer to have increased from $738 million in 2009 to $3.8 billion in 2011.

Nevertheless, Facebook co-founder and CEO Mark Zuckerberg is reportedly hesitant with the IPO idea for the company, fearing that that the culture of the giant social networking site to change, that is, to be involved more in stocks instead of creating products and services.

As of this writing, Facebook, Morgan Stanley, and Goldman Sachs have not released any formal statement on this IPO issue, which could be the biggest US Internet deal ever, surpassing Google Inc., which raised $1.9 billion in 2004 at a $23 billion valuation.



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