Facebook joining the Nasdaq club?

Sorry, NYSE. Reports say the company's IPO -- expected in May or June -- will put it on the Nasdaq, along with Apple, Google and Microsoft.

By MSN Money Partner Apr 6, 2012 11:36AM

By The Associated Press

 

Facebook will list its shares with Nasdaq, according to media reports.

 

That would be a big win for the index, which competes fiercely with NYSE Euronext, especially for an initial public offering as large as Facebook's, pegged at $5 billion.

 

The New York Times and CNBC cited anonymous sources on the potential listing. Calls to Facebook and Nasdaq OMX Group were not immediately returned Friday.

 

Part of the reason the Nasdaq is considered the more attractive option for Facebook is because of the Internet heavyweights already listed there, which include Apple (AAPL), Google (GOOG) and Microsoft (MSFT). (Microsoft publishes MSN Money.)

 

NYSE snared LinkedIn's (LNKD) IPO last year. The professional networking site doubled its IPO price in its first day of trading in May 2011 to give it a market value of nearly $9 billion. It was the largest for any Internet company since Google had its IPO in 2004.

 

Facebook is in another economic sphere. In papers filed in early February, it was disclosed that Facebook's IPO could place the value of the Menlo Park, Calif., company at $100 billion. That would make it one of the world's most valuable companies eight years after it began as a dorm-room startup at Harvard University.

 

If Facebook can raise $5 billion by selling a small percentage of its shares to the public, as is expected, it will dwarf all preceding Internet IPOs. The final tally will shift with Facebook's bankers gauging demand for those shares on Wall Street.

 

Joining corporate America's elite would give Facebook financial clout as it tries to make its service even more pervasive and expand its global audience of about 845 million users. The move could also help Facebook fend off a challenge from Google, which wants to rival Facebook as with its own social networking system.

 

Following the model of Google co-founders Larry Page and Sergey Brin, Facebook CEO Mark Zuckerberg set up two classes of stock that will ensure he retains control of Facebook as the sometimes conflicting demands of Wall Street exert new pressures on the company. He will have the final say on how nearly 57% of Facebook's stock votes, according to the company's February filing with the Securities & Exchange Commission.

 

Facebook is expected to begin trading under the ticker "FB" in May or June.

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

ABOUT TECHBIZ

Start investing in technology companies with help from financial writers and experts who know the industry best. Learn what to look for in a technology company to make the right investment decisions.

RECENT POSTS

Would you pay $700 for Sony's new Walkman?

Hand-carved from an aluminum block, the 128-gigabyte ZX1 resurrects the iconic portable music player -- minus the cassettes -- for premium buyers in search of high-quality audio.

VIDEO ON MSN MONEY

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min

MSN MONEY'S