Facebook May Delay IPO Untill 2012 [Report]

Must Read

Freshers Rejoice As Cognizant To Hire 20,000 Digitally Skilled Graduates With Eye-Popping Salary Packages

American multi-national Cognizant is gearing up to be on a hiring spree as they plan to hire...

Freshers’ Salary On The Rise In IT Companies Amid Mid-Level Layoffs

The Information Technology industry in India is recently going through some turmoil with massive mid-level layoffs taking...

How A Professional Tech Writer Can Market Your Business?

The product is ready after much designing, planning, and execution. What is it that is required now? An in-detail...
Aarzu Khan
A full-time data scientists and a part-time industry analyst; still learning power of effective presentation and firm believer of the thought "Numbers are always magical". Love to be in the network of people who 'know' how to respect their time and keep others engaged in meaningful activities.

There is every chance that can delay an IPO of Facebook for 2012 as learned by Bloomberg from three sources familiar with the matter. By the IPO schedule change, Mark Zuckerberg – CEO, will get more time to gain users and accelerate the sales which in turn can pay back with higher share value at time of launch.

This comes with no surprise that despite of various criticism on security issues with Facebook, Mark has always been very careful on the subject. In his recent comments, few days back, he said “At some point along the path, I think it’ll make sense to have an IPO. But we’re not running the company to do that. We’re running the company to serve more people,”.

If Bloomberg’s report to be believed, it will only benefit Facebook from another year of growth absent the added scrutiny that comes with a public listing, instead of holding an IPO in 2011 as investors speculated, said the people, who asked not to be identified because Facebook doesn’t discuss share-sale plans. Still, Zuckerberg, who holds board control, could push for a stock sale at any time, they said.

Advertisements

Facebook’s IPO has been talk of the town from last few years among the investors and potentials buyers. With the company’s revenue and valuation is on growth path swiftly, it’s poised to become next Google, whose public initial offering was widely successful, with the company increasing its market capitalization fivefold over the coming years.

From the investors point of view, it may be the best time when they can expect the best returns on their equity. Startups are often urged to sell shares by employees and in Facebook’s case, some of that pressure has been allayed by private sales, often facilitated by such exchanges as SecondMarket Inc. and SharesPost Inc., which help find buyers for startup shares.

But Mark is going through various set of challenges which are bounding him to be very precautions before going to public. With the growing competition from Twitter, a micro blogging service, which has amassed over 190 million visitors per month, it is important for Mark to find the new ways to keep their users interested. Management of constantly increasing work force is another internal challenge for him as he holds control over board in Facebook Inc. On the other hand Facebook is still bleeding on users data security issues from last couple of months. Not to be end, with the latest news from sources that Google is gearing up to launch another social networking website, Mark may be going through sleepless nights.

“There’s definitely the market demand and appetite for a very successful IPO,” said Hollifield, who works with venture capital firms and startups. “Facebook’s IPO is going to be a huge watershed for the whole Valley.”

2 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Paytm And PhonePe Will Spend Jaw-Dropping Amount On Marketing Efforts In 2020

It has recently been reported that Paytm and PhonePe which are leading digital payment companies of India...

SEO Secret: Meta Description Drives More Clicks Than Title, Reveals Study!

If you are a digital marketer in 2020 or someone who takes a keen interest in consumer behaviour, you’d be shocked with...

Chrome Had More Than 500 Harmful Extensions: Users Beware!

Google is committed to providing a clean, safe and enhanced internet experience through its Chrome browser. In a bid to do so,...

Why Zuckerberg Endorsing A Move That Could Be Bad For Facebook!

Facebook Inc. (NASDAQ:FB) has been under the radar of several governmental institutions and privacy regulators for their overly alarming activities related to...

Microsoft Warns Millions of Windows 10 Users, And It’s Scary!

Microsoft’s Windows 10 update worries seem to haven’t stopped even after they started to secretly offer Windows 10 for free. Despite Microsoft’s...

Microsoft Study Reveals Indians Have Become Less Digitally Civilised Than The Previous Years!

With the coming age of digital boom in India, more and more people have been gaining access to the internet and have...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This