Facebook initial public offering (IPO) in 2012

Facebook initial public offering (IPO) in 2012 : Facebook, the world’s most popular social network, is preparing for an initial public offering in 2012, according to “people familiar with the matter” - says a Wall Street Journal report published on Monday. The subject has been much discussed lately. Founder and Chief Executive Officer Mark Zuckerberg said the IPO was possible “at some point” but pointed out it was important “to build this company so that it’s great over the long term.”

Executives at Facebook are eyeing dates between April 2012 and June 2012 for the IPO. The company is exploring raising $10 billion, and the offering is expected to value the company at more than $100 billion, says the WSJ report. This would be the biggest IPO by an Internet company since Google raised $1.7 billion when it went public in 2004. David Ebersman, Facebook's Chief Financial Officer, has negotiated a public float with Silicon Valley bankers, but Zuckerberg hasn’t decided for any plan yet.

Meanwhile, “Farmville” creator Zynga has filed for an IPO of up to $1 billion. Daily deals service Groupon raised $700 million in November but eventually plunged below its launch price of $20 within weeks.LinkedIn and Pandora are now also below the levels their stocks reached during their public debuts earlier this year.

According to sources, Facebook’s revenue in the first six months of 2011 doubled year-on-year to $1.6 billion. Eric Feng, who runs social-networking site Erly.com, thinks that the cash Facebook will get in an initial public offering would allow them to make more acquisitions and improve or work on new projects, like a rumoured Facebook phone or a netbook. Feng said: “It'll be a powerful bullet for them”. Facebook announced in January it would exceed 500 shareholders this year. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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