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.

By Charley Blaine Nov 28, 2011 9:02PM
Charley BlaineWondering when the great Facebook initial public offering is coming? Try the second quarter of 2012 -- market conditions permitting, The Wall Street Journal said late Monday.

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.
23Comments
Nov 29, 2011 4:51AM
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"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????

Nov 28, 2011 9:54PM
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facebook is over-rated its just another social network it brings nothing new everyone thought AIM was the greatest thing now look ta*da smoke an mirrors taken away there is nothing in facebook of value. everyone who supports it has to constantly blurt out why facebook will last well let me give you guys the time line first there was AIM success then died out, friendster success then died out, bebo success then died out, xanga success then died out, myspace success then died out, now facebook... im sure you can see what happens next.
Nov 29, 2011 8:20AM
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One day your in, the next day your out.
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.

Nov 29, 2011 2:56AM
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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.  When this IPO hits, it'll be vastly overpriced due to the hype but it will be a terrible investment. Stock prices in theory should be based on current valuation, not on future growth. The future growth model leads to bubbles that inevitably burst. We've seen it time and time again, but we continue to make the same mistake.  
Nov 29, 2011 8:57AM
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While there may be many willing to invest this IPO is essentially worthless.  In a moment a new idea can emerge and quickly draw off all the "growth value".  There is no other real value.  There are no commitments; no contracts and no fees.  There is no hard value.  What a scam. Best advice is " in and out quickly"
Nov 29, 2011 10:09AM
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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.

Nov 29, 2011 7:48AM
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Oh, well!  Nothing last forever you know.  The internet is going strong now but for how much longer?  The economy crumbles sooner or later it'll take everything else with it no matter how advanced technology is.  
Nov 29, 2011 12:06PM
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Facebook is a dead man walking. It is already being replaced by the next best thing. The IPO will be fine as a gambling play. This is definitely not a buy to hold.
Nov 29, 2011 10:50AM
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I wonder how long before the first lawsuit is filed against Facebook for destroying so many families?
Nov 29, 2011 7:07AM
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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.

Nov 29, 2011 11:58AM
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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?

 

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The money powerful comes with a dictatorship!
Nov 29, 2011 9:27AM
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I'm sure facebook is just another fleeting moment in time as all the other social networking sites....just a matter of time before it to fissles. The candle's flame also burns brightest when just lit....and then it too dies in ambers as facebook will. Facebook has evolved and not for the better that I can see....oh and what about the poor snooks who helped come up with the facebook idea....they got zip. One hog took it all....and soon his ill gained empire will tumble. So ride the fame while you can buddy.....your time in the spot light will be short lived.
Nov 29, 2011 4:40PM
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Remember when myspace was the big thing? It is still there but is it worth anything close to FB? I doubt it.  The reason FB is worth so much is not that they have lots of assets but they have lots of advertisers and traffic to look at those advertisements. It is one of those low overhead high earnings companies that everyone trys to make when they open a business. Yahoo and Amazon started that way also and they didn't die to the new best thing. If FB keeps pace and doesn't get greedy and stays free to the consumer and makes money from the advertisers they have just what they need to stay big. Google is a very high value company and they didn't start out with lots of assets, they started as a service provider and have lasted just fine. But now on the other hand, it looks like we have another net boom and bust coming and it will be interesting to see if the Wall Streeters have forgotten what happned last time this happened! Web based businesses are a risk at most times and with the way they are starting IPO's again it shouldn't be long before the dive starts!
Nov 29, 2011 10:08AM
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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!

Nov 29, 2011 12:11PM
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Well, the first call to sell came at exactly 1100 hrs so now we are on a downward trend...Not a real surprise...Still early, long way to go. See what happens.
Dec 6, 2011 3:12PM
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Facebook Inc gonna be a scary IT Company after IPO. Why? always do remember that Facebook Inc held so many variable data from 800+ millions Internet users all around the globe...same like 3rd largest population country below China & India.

http://itworldcom.com/future-facebook-after-ipo

Hope Facebook Inc gonna fall on good hands...warm regards,
Nov 29, 2011 11:00AM
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I know of several people who are leaving FaceBook and going to Twitter. I for one, really don't like the site that well, there just for my kids, who are in their 40's, and only one out of three goes online more than once a week.
Nov 29, 2011 11:55AM
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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.

Nov 28, 2011 11:02PM
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I don't have a face book account, but if you look at how many people log on and spend time on the website
this company is only going to get stronger..  up 57% from last year.   Wow.
It now has 800 million users, with 500 million users logging onto the site daily
i don't see this as over-rated or going anywhere. In today's marketing, the youth and smaller companies are driving this company both in new users and advertising dollars.


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