The rumor mill on a Facebook IPO has been churning for months.
Insiders and reporters now believe that as early as Wednesday this week that Facebook will file for it’s initial public offering. The offering will value the company somewhere between $75 and $100 billion and raise approximately $10 billion for the firm.
It will also make Mark Zuckerberg very, very paper rich. (He won’t technically be rich until he sells some of his shares; I’m sure he’s doing just fine.)
The irony with the Facebook IPO is that the company doesn’t produce anything. It is a platform for users to share their lives… which Facebook then turns around and sells as marketing data.
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Free From Broke was featured in the following carnivals:
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Thanks for the link, to be named along with other top blog is a privilege.
Thanks for the link!
It’s interesting that Facebook had revenues of $4.27B in 2011, yet the value of the IPO looks to be in the $100B range. 25 x sales is a pretty hefty premium to pay. I realize that Facebook has a ton of users and revenue is just starting to take off (2011 was twice the revenue as 2010), but things change so quickly. My wife is addicted to Pinterest and rarely goes on Facebook anymore.
Makes you think of MySpace, right?
Yea he is thinking big – he just has announced massive recruitment in Ireland – hope all goes well..
The irony with the Facebook IPO is that the company doesn’t produce anything. Really? It produces a lot of demographic information and trends.
That is certainly true. But how do you value what that is worth? Are there reports showing how the information is making money? And what happens if some regulation changes how the information can be collected or used? That would completely change the value of the company.
It’s incredible how FB has grown but I wouldn’t trust buying into a valuation. At least not now.
It’s exciting to see how much this will go for.
Thanks for including me in your roundup!
I have pondered the Facebook IPO for a while. Their multiples seem crazy, but that is roughly the same as Google sat on their IPO day and we all know how that turned out.
Yeah, but you can’t invest in FB because of what Google turned out to be.