Jan 28, 2012

Posted by in IPO | 0 Comments

Facebook IPO Price

Up on Deck – The Facebook IPO Filing

Facebook IPOAs the anticipation continues to grow people with some familiarity to the matter have said that as early as the upcoming week papers may be filed by Facebook Inc for their initial public offering. The Facebook IPO would undoubtedly be one of the largest ever for any U.S. company in history.

Those same people have suggested as much as 10 billion may be raised by the action and a value for the social network to be anywhere from 75 to 100 billion. The deal is viewed as the latest Web investing booms finest hour. One interesting thought mentioned was that a 75 billion valuation would actually be a bit lower than what was previously expected.

It is incredible to think that in eight years or less this website has totally altered the way people throughout the world communicate with each other. It’s 800 million members do everything from sharing pictures of the baby to organizing strong political protest causes.

Facebook IPO Filing is Finally Here!

It has also been suggested that it will be Morgan Stanley who will be selected to take the lead on the deal. Obviously everyone in the world would do whatever they could to get some part in the process with all the positives it would bring such as millions of dollars in earnings just for starters.

The selection of Morgan Stanley would be a true disappointment to Goldman Sachs which was at one time considered to be the top choice. The only comforting news for them is that although Morgan Stanley would take the lead position there would in fact be still a significant role of sorts for them to play.

It is the advertising part of the business that drives the revenue at Facebook. All big brands through fan pages and display ads look to interact with the vast number of consumers who are on it. That revenue Facebook has generated increased in 2011 to 3.8 billion from the 2009 total of 738 million which is a huge increase. These figures are provided by the research firm eMarketer.

Facebook IPO Factors to Consider

There will be a number of factors coming together to determine the final valuation of Facebook including things like the European economy’s health, the IPO market and the demand for social media by investors.

A whole new generation of Silicon Valley millionaires that have not been seen since the Google offering will be minted by the IPO.

The Facebook IPO will also look to test Mark Zuckerberg the Chief Executive’s ability to direct a global operation being scrutinized every three months by investors. The company he began in 2004 now sees over 500 million users daily on the site.

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