Facebook To Go Public In 2012
The Facebook co-founders could be set to see their billions increase even further as the social media company owners prepare to make Facebook public. The Wall Street Journal (WSJ) has reported that Mark Zuckerberg and co. are ready to file for the IPO in Q2 of 2012.
The initial public stock offering next year could raise up to $10 billion and increase the company value to more than $100 billion, but the actual amount would depend on the economy. This IPO would mean that the co-founders 24% share would equate to a $24 billion worth. The WSJ said that this valuation of the social media site is double that of Hewlett-Packard.
Back in January 2011, Facebook was valued at around $50 billion and received $450 million investment from the king of American banking, Goldman Sachs. David Ebersman, Chief Financial Officer at Facebook said that he has discussed going public with bankers at Silicon Valley but nothing had been confirmed.
Facebook has been one of the most visited websites on the internet, proving a real challenge to other online giants such as Google and MySpace. The social network already has 800 million account holders worldwide in its short seven years since it was created in a Harvard dorm.
The Facebook IPO would be as much as ten times more than other dotcoms that are waiting to go public. Many internet companies have gone public this year, including Groupon and LinkedIn, only to see their shares drop significantly within a short space of time, 41% and 36% respectively.
At the moment Facebook does not report on its financial results, but a source told Reuters that revenues for the first half of the year had doubled to $1.6 billion. However, as the company exceeded 500 shareholders it will file its public report by April 2012.
The funding from the IPO would allow Facebook to venture into other projects that are in the pipeline, such as the widely speculated Facebook smartphone.