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Facebook CEO Mark Zuckerberg  (Source:
Facebook hopes to be valued at $100 billion

While many details are still up in the air, it has been revealed that social networking giant Facebook is anticipating a 2012 initial public offering.

Facebook, which has achieved 800 million users in its mere seven years of existence, is considering raising $10 billion in hopes of the company being valued at $100 billion, according to Reuters

Sources close to the talks told The Wall Street Journal that Facebook has drafted an internal prospectus and that a S-1 filing could come before the end of 2011.

Also, Facebook's Chief Financial Officer David Ebersman has discussed the IPO with Silicon Valley bankers. However, Facebook CEO Mark Zuckerberg has not decided on any bankers to manage the IPO. Zuckerberg also hasn't made any final decisions on terms.

Many previously thought Facebook would go public in 2011, but a shaky economy and a battle with the U.S. government over privacy-related issues has pushed the IPO until 2012.

The IPO looks to be a good move for Facebook, as it would allow the social beast to make more acquisitions, work on new projects, and attract more engineers.

In the first six months of 2011, Facebook reported $1.6 billion in company revenue. With a potential company value of $100 billion, Facebook would double the valuation of Hewlett-Packard.

Sources: Reuters, Washington Post

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~3.2 billion annualized Revenue...
By MrBlastman on 11/29/2011 12:16:24 PM , Rating: 5
And a value of 100 billion?

Yeah... right. Lets see... hmm...

Groupon: 9.7 billion value now... struggling to stop losing clients/make money.

Pandora: 1.7 billion value, can't make money... "Uhh... dudes, we're not focused on the bottom line right now, just on delivering our service." Haha, what a joke.

LinkedIN: Why do they exist again? 5.8 billion in value, 243 million in revenue and 15.3 mil in profits points to "????"

I could go on. 100 billion is absurd for Facebook(palm). Sure, they have the users, but, they're basically a fad. Can they evolve? Or will they stay a one-trick pony? Google evolved. The surprised me. I'm not counting on Facebook doing the same.

RE: ~3.2 billion annualized Revenue...
By Samus on 11/29/2011 12:57:33 PM , Rating: 2
It's as if Facebook wants to put themselves in a position to buy Google...

RE: ~3.2 billion annualized Revenue...
By Quadrillity on 11/29/2011 1:09:44 PM , Rating: 2
about as likely as a significant amount of users on Facebook realizing that their personal information is being sold to the highest bidder.

"if you're not paying for something, you're not the customer; you're the product being sold"

By its tom hanks on 11/29/2011 2:08:44 PM , Rating: 2
i believe you mean every bidder. raising $10 billion without selling any actual products isnt for the passive sellers

RE: ~3.2 billion annualized Revenue...
By Calin on 11/30/2011 3:53:46 AM , Rating: 2
"if you're not paying for something, you're not the customer; you're the product being sold"

I made a (paying) subscription to a (dead tree) bicycles magazine about two or three years ago. I really felt like I was the product being sold, not the magazine.

By corduroygt on 11/29/2011 1:31:57 PM , Rating: 5
Although Facebook is in a much better position than those other companies, this is the Web 2.0 bubble just like the .com bubble of the late 90s.

By senecarr on 11/29/2011 1:36:04 PM , Rating: 2
I know shorting a stock is rather risky, but if you could actually short a company 5 or 10 years into the future, I would for most of these companies. Heck for Pandora or Groupon, if I could do a short for 3 years, I'd take it.

RE: ~3.2 billion annualized Revenue...
By Da W on 11/29/2011 1:57:53 PM , Rating: 3
-That's a Price-to-Sales ratio of 32.
-We don't know how much PROFITS it makes.
-It points toward at least a Price-to-Earnings ratio above 100!!! (Netflix hit 80 before plummeting from 300$ to 60$)
-That's a book value of 125$ per user.

Are you giving Facebook 125$ worth of value per year?
I know though it will have a glorious POP on the day it enters the market. I will probably try to short it, if there are options or other derivative products written aainst it.

By MrBlastman on 11/29/2011 2:09:04 PM , Rating: 2

32 is absurd. Even 8 times is risky and pushing the limits, but 32???

By rsmech on 11/30/2011 2:45:03 AM , Rating: 2
Better pray social security doesn't go away. That and filling your coffee can with cash seems safer than a 401K. The financial sector is getting as bad as lawyers. They just scheme up ideas to dope you out of your money. Early 90's internet stock inflated, housing market inflated, this is there next inflation. They need a scheme to get rich off trading your money. You may win, but they win either way.

What does facebook produce. Information, the same info. can already be purchased from other sources. Google, grocery stores, ect. How can something which can so easily be replace so fast be worth so much. AOL, My Space, how much has Google made off youtube? Netflix. I can hear Nero fiddling now.

"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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