Will Facebook Enter IPO Sooner Than Expected?
Facebook’s valuation is skyrocketing and is worth $100 billion in the private marketplace, as suggested by experts. But while Mark Zuckerberg has made it crystal clear that Facebook will enter IPO in 2012, many still believe that the biggest social networking space in digital universe could possibly go public this year.
Speculations of enlisting at SEC before the year ends grew bigger when Facebook executives met with banks to discuss initial public offerings. Since we’re just halfway the 2nd quarter of 2011, these talks and moves could be an indication that Zuck’s organization may submit to mounting pressure for them to report their revenues and losses to the public. According to Wall Street Journal report: “The strong demand and sharp increase in Facebook’s value from $10 billion in mid-2009 give Mr. Zuckerberg, other Facebook executives and its relatively small circle of investors a potentially irresistible incentive to take the fast-growing company public despite the downside of doing so. As a private company, Facebook isn’t required to report its revenue, profits or losses, and executive compensation, as publicly traded companies must do.”
While Facebook is still ironing out their plans and clearing up the stage for their IPO adventure, it seems other companies have decided on this matter. Last week, the business-oriented social networking site, LinkedIn, has filed for a whopping $3.5 billion IPO. Clearly, LinkedIn is aiming to be the largest Silicon Valley IPO in recent years. With 100 million members from around the globe, the company reveals IPO Details. Millennial Media has also been very vocal about going public and has recently appointed a finance officer that is a well-known IPO expert. But the case is different for Skype, following an $8 billion deal that made them a part of Microsoft—will never realize an IPO deal.
With Facebook immediately shooting down the idea of joining the IPO round table this year, despite their meetings with the banks and stated that “it has not necessarily decided to IPO yet, but that it is exploring the move as a strategic option,” the anticipation will just grow each day—until it happens.
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