Care to buy a Facebook share?
Facebook Inc, the social networking giant that launched in 2004, could be aiming for its IPO (Initial public offering) as close as sometime this week. This confirmation has not yet gone public and the dates may vary; but it sounds like Facebook will need many friends to raise the funds that they are hoping for.
When the company finally makes its public debut; it will without a doubt rank itself next to the largest public companies in the world; including McDonalds and Amazon.
The company is discussing a valuation of $75 billion to $100 billion. Facebook is close to hiring Morgan Stanley to handle the deal, and Goldman Sachs Group will probably play a “major role” in the IPO, the Wall Street Journal said yesterday. Facebook hopes to raise $10 billion in the IPO, in order to shoo away rival competitors including Google and Twitter.
Facebook's revenue is driven by its advertising business, as big brands rush to the site to interact with consumers through display ads and fan pages. Facebook's final valuation will be determined by a variety of factors, people familiar with the matter said, such as investor demand for social media, the IPO market and the health of the European economy. Facebook’s IPO is said to be the most anticipated tech IPO since Google went public in 2004.
The real question is, with the enormous increase of advertising revenues generated annually, does the company really need to launch IPOs to sustain itself, or is Zuckerberg up to something else? "The company doesn't need to raise cash for its business: it's not like they are building factories," says one analyst close to the action, who wishes to remain anonymous. "This is about paying off investors."
- New one-stop Smart App Store highly-rated by UAE residents
- GCC to pioneer safe and secure online shopping
- Too much for Big Brother to handle? Will the UAE ban Whatsapp after it turns into a calling app as well?
- Smart Dubai strategic plan launched
- For the first time official data reveals the Middle East's facebook and twitter trends, expect the unexpected!
- Facebook 'shares' online slip by 9.6%
- Worthy of a 'like': Facebook crushes Wall Street's expectations for second time in a row, with 60% revenue hike!
- Facing the facts of the Facebook IPO
- Facebook marketing boom drives demand for social-media ad tools
- Rumours has it Facebook is after Waze GPS, in a whopping $1 billion deal