Facebook allset for its IPO filing
The website which in less than eight years attracted the attention of more than 800 million users and which has changed the way the people across the globe communicate, from oraganising political protests to sharing pictures and information is none other than the site Facebook. It is now all set for filing its IPO (Initial Public Offering) as early as this upcoming week. It could file it IPO paperwork as early as wednesday of next week.
The deal can be seen as defining moment for the latest web investing boom, which could raise as much as $10 billion and value the social network site between $75 billion and $100 billion. Thus we can say that a value of $75 billion would be below earlier expectations. It seems that Morgan Stanley is close to be picked as the “lead left” position in IPO filing. It is also expected that Goldman Sach could also play a significant role in the financial filing paperwork.
Facebook is targeting an IPO sometime between April and June. According to Deologic a $10 billion Facebook offering would rank fourth among IPOs for US companies behind Visa Inc, AT & T Wireless and General Motors Co. This would rank Facebook as the biggest U.S internet offering ever, replacing Google Inc. which raised $1.9 billion in 2004 and $23 billion valuation. So here we can compare that Facebook with a $100 billion valuation would be worth as same as McDonald’s Corp and which would be nearly the value that is half of Google.
Leading the Facebook sale would be a huge win for Morgan Stanley, which last year bridged its position as the top internet stock underwriter by leading the IPOs of LinkedIn Corp. ,GroupOn Inc. , and Zyanga Inc.
Facebooks main revenue is driven mainly by its advertising business as we have seen big brands rush to the site to interact with consumers through display ads and fan pages. This has helped facebook a lot in increasing its revenue over the last 8 years.
Thus, Facebooks final valuation will be based upon variety of factors such as investor demands for social media, the IPO market and the financial condition of the europen market.
So it will be really interesting to see how Facebook, which has affected the social life and activity of people in various ways, readies its IPO.