Facebook IPO Wants To Raise $10B

by , Jan 30, 2012, 11:53 AM
  • Comment (2)
  • Recommend (2)
Subscribe to Around the Net In Online Marketing

Tags

Years in the making, Web watchers are bracing for what will likely be the biggest tech IPO since Google.  

Yes, Facebook is close to filing documents for a long expected public offering that is on track take place in late May, reports AllThingsD. As such, “there will be no lack of media hype, elaborate obfuscation by rivals and a plethora of inaccurate hoo-ha that is about to be unleashed upon the world,” it writes.

“The company is discussing a valuation of $75 billion to $100 billion,” according to Bloomberg Businessweek, citing two sources. “The tech giant is aiming to raise a whopping $10 billion,” CNN reports. “That would eclipse the previous U.S. IPO tech record set by Google. In 2004, the search engine and e-mail provider, raked in just under $2 billion.”

Readily weighing in on such matters since signing up for Twitter: Rupert Murdoch tweeted, this weekend: "Facebook a brilliant achievement, but $75-100bn? Would make Apple look really cheap."

Among other reasons why he thinks a Facebook IPO is “irrelevant,” Forbes contributor Peter Cohan agrees that the company is immensely overvalued.  Yet, “it's difficult not to mention Google in the same breath as Facebook these days,” writes The Register. “For context, in 2004 Google's initial public offering was given a $1.9bn leg-up and was valued at $23bn on its Wall Street debut. The rest, as they say, was history.”

As for the timing of the event, The Wall Street Journal reported last week that it could come Wednesday, although its sources said is could shift a day or even two later.

Looking ahead, The Consumerist writes: “After Facebook goes public, it will be interesting to see how the company changes its mode of operation to please stockholders, who will want to see ad revenue shoot off the charts.” Also, “It will be interesting to see how any policy changes will affect Facebook users and in turn, the network's popularity.”

2 comments on "Facebook IPO Wants To Raise $10B".

  1. Jill Kennedy from Manka Bros.
    commented on: January 30, 2012 at 12:11 p.m.
    I think a wildcard here is that there are millions of users that really hate Facebook and more and more are either quitting or just not going anymore. Granted, they can afford to lose a few million users and still pay the bills - but the bad world of mouth buzz should be alarming to anyone involved in the IPO. http://mankabros.com/blogs/onmedea/2012/01/27/facebook-and-the-disappearing-valuation/
  2. Neil Leddy from Sponsorship Sales Group
    commented on: January 30, 2012 at 2:53 p.m.
    Other than repaying original investors, I'm wondering what the company plans to do with the capital? While it could be argued that the capital could be used to hire thousands of programmers a la Google, why not grow the company organically?

Leave a Comment

Sign in to leave a comment. Don't have an account? Join Now

Recent Around the Net In Online Marketing Articles

  • Cheaper Nook's Getting Web Browsers, Email  

    Nook Simple Touch, Barnes & Noble’s inexpensive line of e-readers, is getting a Web browser and ...

  • Foursquare Gets $41M In Private Equity  

    Giving itself more time to grow and mature as a business, Foursquare just took $41 million ...

  • Google Unveils Google Keep App  

    Confirming earlier reports, Google on Thursday unveiled a new note-taking app named Google Keep. But, despite ...

  • Nexflix Friends Facebook  

    In what Web watchers are calling a long-overdue integration, Netflix has finally tapped Facebook to offer ...

  • Mason Out At Groupon  

    Andrew Mason is out at Groupon. Yes, after another disappointing quarter -- which sent the deal ...

  • Groupon Loses Market Value  

    In the surest sign yet that the once-booming daily-deal space has busted, Groupon lost a quarter ...

  • Foursquare To Take Credit, Debit Cards  

    In conjunction with its check-in deals program, Foursquare will now accept Visa, Mastercard and debit cards. ...

  • Pinterest Valued At $2.5B  

    Social scrapbooking sensation Pinterest has secured $200 million at a valuation of $2.5 billion. “There have ...

  • HP To Adopt Google's Android System  

    Reshaping the mobile landscape, Hewlett-Packard reportedly plans to adopt Google’s Android operating system to run a ...

  • Amazon Creating App Currency  

    Amazon on Tuesday unveiled a virtual currency for Kindle Fire owners to purchase apps and games, ...

» Around the Net In Online Marketing Archives