Facebook Gearing Up For $100+ Billion IPO in 2012


Trust, it didn’t surprise me much as it was inevitable and Facebook is also heading towards the wall in respect to hold their financials close to heart. But what has really stunned me is whopping $100 billion IPO value! Facebook is aiming S -1 filing by end of this year which will lead to an IPO by early next year, says CNBC.

Though, considering current financial scenario of Facebook in private market this is apparently not be a challenge Facebook need to be worry about. Last week, Facebook valuation stood close to $85 billion in private market and by the time company will hit the floor for IPO, $100+ billion target could easily be revised on higher side – if the growth of Facebook will remain constant for next two quarters.

There are close to 685 million users associated with Facebook roughly and its expected that company will achieve 1 billion user mark by end of 2011. However, based upon last week’s analysis on Facebook penetration in U.S., which claims the downfall, the party time may get postponed for a quarter or two.

It was July 2010 when news about possible Facebook IPO initiative surfaced first time ever. Later, in order to buy gain more confidence towards revenue and improve user base, Mark Zuckerbeg postponed the IPO for 2012.   

This time Mark will not be having any further bandwidth to further postponed or do any changes due to the act known as “the 500 rule”. As per the Security and Exchange rule 500, any company which hits the 500 investors mark, will have to open its financial every quarter to Security and Exchange Commission, just as public companies do. And it’s again expected that Facebook will hit 500 investors figure by end of this year.

At the time when market is powering with the fresh rounds of investments, people are again turning back to share market and a recent IPO of LinkedIn has already witnessed the marvelous success, it makes all sense for Facebook to go for IPO with maximum paybacks.

At this time, I am recalling the statement from Hollifield who works with a venture capital firm “There’s definitely the market demand and appetite for a very successful IPO and Facebook’s IPO is going to be a huge watershed for the whole Valley.”

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