Facebook, the world’s biggest social networking are preparing for a public stock offering in the coming spring which could raise up to $10 billion according to sources close to the matter.
The Wall Street Journal reported that the company is hoping that the IPO would value the business at around $100 billion. David Ebersman, the chief financial officer had discussed a public float with Silicon Valley bankers but their founder and chief executive Mark Zuckerberg had not decided on the terms and his plans could change.
Facebook have over 800 million users worldwide over seven years of continuous growth. They have not yet selected bankers to manage the IPO. The WSJ did add that they were ready at any moment to head in the direct of a flotation, according to insiders.
If Facebook are valued at $100 billion, then they will be worth double Hewlett Packard, quite an achievement for a company founded in a dorm room.
Experts claim that due to the number of people and employees who have stock options may force the situation. The SEC say “a company must file financial and other information with the SEC 120 days after the close of the year in which the company reaches $10m in assets and/or 500 shareholders, including people with stock options”.
Google were forced to file for an IPO in 2004 after they passed the 500 shareholder figure and while we don’t know how many of the 3,000 Facebook staff hold stock options, they did say in January that they would pass the 500 shareholder mark this year.
Facebook are in a healthy situation, while they don’t disclose financial results, a source spoke to Reuters earlier this year and claimed that the company revenue for the first six months of 2011 doubled to around £1 billion.