Facebook IPO seen coming in spring
The social-networking site may seek as much as $10 billion in its initial public offering. That could make the company worth $100 billion -- as much as Toyota.
The social-networking company is in talks with the Securities and Exchange Commission about the timing of the IPO. There is a chance the first filings will come this year, the Journal said.
The Journal said Facebook is thinking about an IPO that would raise $10 billion and theoretically value the company at more than $100 billion.
That would make the company among the 40 most valuable companies in the world -- on par with Toyota Motor (TM), Verizon Communications (VZ) and Merck (MRK).
The Journal based its report on conversations with several sources, adding the caveat that final decisions have not yet been made.
Article continues below.The final value of the company -- the value used to price shares -- and how much money it seeks in an IPO will be determined largely by the market and the European economy, the Journal said.
Facebook CEO Mark Zuckerberg has publicly expressed reluctance to do an IPO. And he has opted to keep Facebook private longer than many people suspected he would. But he is warming to the idea, the Journal said.
The social network, which was started by Zuckerberg in 2004 out of his Harvard dorm room, has helped reshape how people share information and interact with others on the Web. It now counts 800 million users, with 500 million users logging into the site daily.
Facebook's IPO would come amid a spate of other hot Web IPOs this year, like daily-deal site Groupon (GRPN), LinkedIn (LNKD) and an expected IPO from social-game maker Zynga. But none of those will compare in size, scale and investor demand with Facebook, which is one of the most highly anticipated IPOs ever.
The disappointing showing of Groupon's stock, which has fallen below its $20 IPO price in recent trading, may make some investors cautious about a Facebook IPO.
Groupon has fallen nearly 42% in the past five trading days after initially surging in the first two weeks after the IPO earlier this month. It is now 23.8% below its $20 IPO price.
"Facebook has little in terms of value. It has no inventory, no tangibile product, and it's revenue sources are dubious at best. They don't charge for their product and their income is based soley on advertisers. That's a dangerous scenario and makes facebook's long term viability a real risk."
Ummm...Just like google????
Facebook? for real?
Facebook started as a great idea, its now just a corporate world wide webpage for business.
It used to be a website for people.
The whole concept is a mirage,with nothing tangible Facebook will fade away when the next big thing shifts attention away. Unlike Toyota and Merck,FB produces nothing tangible and it wont be long until technology produces the next great idea.
Enjoy it while it lasts.....Its my thought that Zuckerberg see's the writing on the wall and this is the reason he is going to cash in before FB loses its luster. Good for him,I suppose.
In my opionon just a way for facebook insiders to get some value for all there hard work and long hours.Will make most insiders at facebook the 1%.Within weeks it will turn and burn like Groupon,facebook has no realvalue ie land,a real product,etc.There initial hardware needs to be replaced every 6 months as tech equipment wears out or becomes obsolete.
Is this the next junk bond?
i am not well educated on stocks but isnt stocks usually sold to get capital for purchasing machines raw material or a bigger labor force?what would be the object of infusing this money into facebook?
This is a really bad idea... My vote is against an IPO for facebook, because of stupid unjustified actions like when i used my credit card one time, to buy facebook credits, my account was disabled...
Also my wife's account under her married name was disabled because facebook said she was not a real person... Even thou our profiles were linked together and we had our wedding pictures posted to our accounts, that was not enough proof she was real...
Facebook asked for a picture Id to reactivate her account, but her passport is still under her maiden name because its very expensive to get a new passport here in the Philippines... So her account remains disabled...
Bull s*** things like that will bring facebook down in a law suit... Good luck!
Hope Facebook Inc gonna fall on good hands...warm regards,
Yes, we are up over 80 points, good consumer confidence but be cautious. Today is a very different day than yesterday; volume is low and plenty of scumbags roaming around. The call may come at anytime and the selloff may begin. Lets just be cautiously optimistic. More later.
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