Web watchers could barely contains themselves on Tuesday amid reports that a future Facebook IPO could be valued at over $100 billion.
“The social networking firm is now targeting a time frame of April to June 2012 for an initial public offering,” reports The Wall Street Journal, citing sources. “The company is exploring raising $10 billion in its IPO -- what would be one of the largest offerings ever -- in a deal that might assign Facebook a $100 billion valuation.”
A Bloomberg source seems to believe that "Facebook may file for an IPO before the end of the year," though the "[e]xact timing for the filing hasn't been determined."
Regarding a Facebook IPO, ReadWriteWeb suggests: “It could prove very big for the whole tech startup world and for those who enjoy the innovation that startups create.” Why? “Because the Facebook IPO could mean more and bigger startup acquisitions, more support for more startups and an infusion of smart money and experience into radically new tech experiments.”
Despite all the excitement, however, “The timing of Facebook's IPO is likely to hinge in part on the condition of the stock market, which has not been kind lately to some other prominent tech IPOs,” writes The Los Angeles Times. “In a major disappointment, shares of one of this year's most closely watched IPOs, online-coupon company Groupon Inc., have plunged recently.”
Writing in the past tense -- more in reference to Groupon’s dive, than Facebook’s planned IPO -- Gawker concludes: “The Tech Bubble Just Popped.”
TechCrunch even asks whether an IPO is the best thing for Facebook. “To date, Facebook has been conservative with monetization and progressive with product development,” it writes. “But outside stockholders could detract from Facebook’s vision and momentum. They could push for faster returns, and pressure the company to display more ads, turn mobile into a direct revenue stream, and play it safe with product. This might produce short-term gains, but could hamper what CEO Mark Zuckerberg has built into a core communications utility for the world.”Read the whole story...