Facebook is gearing up for an initial public offering next year that would raise $10 billion and value the company at more than $100 million, according to a Wall Street Journal report Tuesday, citing unnamed sources familiar with the matter. The social networking giant is looking at a time frame of April to June 2012 for the IPO, which would be one of the largest offerings ever.
Daily deals service Groupon raised $805 million in a much-anticipated IPO earlier this month, but its stock has since fallen 42% on concerns about the efficacy of its business model. Facebook is expected to debut with annual revenue of more than $4 billion and a longer track record of business performance. Its IPO has been speculated about for years but moved closer to reality after the company raised $500 million in January a private investment round led by Goldman Sachs.
At that time, Facebook said it expected to pass more than 500 shareholders in 2011, and so expected to begin filing public financial reports no later than April 30, 2012. Business Insider reported last week that Facebook could file an IPO prospectus as soon as next month.