Facebook IPO Mania
The long-awaited public offering of Facebook looks like it may happen in late May, according to the Wall Street Journal. Within the next month, the social media giant will need to file its IPO documents with the Securities and Exchange Commission and then wait a few months for their review.
Of course its anticipated third week of May date could be delayed. Just ask Groupon (NASDAQ:GRPN): they filed for their IPO in June but didn’t go public until November.
Regardless of Facebook’s IPO date, the company is expected to see one of the largest Web IPO offerings to date. It may raise $10 billion from its $100 billion valuation from great consumer and revenue growth thanks to its 800 million users. The company had close to $4 billion in revenues last year and it is expected to see it rise by a third this year.
Facebook has said the company’s focus is …
its products versus dollars, according to the Wall Street Journal and in a recent interview with Facebook co-founder and CEO Mark Zuckerberg, he said, “The thing to take away isn’t that we don’t care [about business]. People for years were asking me why aren’t we trying to make more money. I would say I’m trying to build a business for the long term and it was clearly the right strategy.”
Facebook faces an ongoing competitive battle with Google (NASDAQ:GOOG). Last week, the company announced that its Goolge+ will now be included in the search engine’s results; this could prove to be a disadvantage for Facebook.
The company is also likely to see a more traditional IPO than Google and with firms such as Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and Allen &Co they may set the tone. Also investors will need to keep their eye on Facebook’s CFO David Ebersman, who has been preparing the company for the IPO.
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