Facebook could file papers for an IPO as early as this Thursday NZ time, the Wall Street Journal reports.
Un-named sources say the social network will seek to raise $US7.5 billion to $US10 billion by floating 10% of its shares – valuing the company at $US75 billion to $US100 billion.
If Facebook does raise $US7.5 billion or more, it will be the largest tech IPO ever, and the fourth largest of all time.
A $US100 million valuation would be roughly half Google’s market cap, and a quarter that of Apple.
Facebook was founded eight years ago, and claims 800 million active users.
Private equity investors include founder Mark Zuckerberg, Goldman Sachs (which has onsold private equity shares to private investors in the US, Russia and elsewhere) and Microsoft (which bought a 1.6% stake in for $US240 million in 2007, a deal that valued Facebook at $US15 billion).
An IPO filing would reveal Facebook’s accounts, currently the subject of much speculation.
According to eMarketer, revenue increased from $US738 million in 2009 to $US3.8 billion last year, but it was unknown if the the social network was profitable.
New Zealander Mark D’Arcy is leading Facebook’s push to monetise its huge global audience.
Mr Darcy, an Auckland University of Technology (AUT) grad, was back in New Zealand last year with his previous employer, Warner, as part of the team that negotiated the tax-break and law-change deal for The Hobbit.
He now works as Facebook's director global creative solutions.
Comments and questions
Anyone for a punt?
Not for me, too close to the young and restless. Like any pub or club booming one minute and the mob move down the road to the next new one on the block.
Curious but facebook is a topic of conversation with an increasing number I note trying to leave. Seems once they have your pic you cant really get away...sorta like joining the mafia i guess.
No intelligent investor would put money in just because it is "Facebook", unless they saw evidence of fantastic earnings growth, and evidence of debt under control.
I don't want to pay for goodwill and debt, but I will pay for good earnings.
From the files of "what would happen if" ........if everyone on face book stopped using it until the company gave each registered person 1 share - how would that work out for ya? After all its worth nothing/zero/zilch if no one logs in! Come on people rise up - point that grubby little finger and the log out button! You the 99 per centers who are constantly whining about having 1% - bet you use Facebook to rally your troops dont you? Well lead the way - 'log off for humanity'. PS I just copywrited 'log off for humanity' as a term so don't steal it you mongrels
Love it !!
such vision from the comments... such bold, incisive vision.
"I don't understand this, therefore it's rubbish".
bet they'd have backed Google too.
Freudian slip perhaps?
Still understand what you mean I guess but theres a huge gulf of difference between facebook and google on so many levels. On a local level I look no further than the Burger Fuel IPO to be wary of the 'You Twit Face' generation.
Facebook is on its way to becoming worthless and the valuation is an absolute joke...
http://mankabros.com/blogs/onmedea/2012/01/27/facebook-and-the-disappearing-valuation/
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