Tuesday, November 29, 2011

Facebook Expecting $10 Billion in IPO

IPO = Initial Public Offering. For those who may not have known the meaning, or skipped that Economics class that day. Facebook has been the largest financial mystery for almost a solid decade now. Change is inevitable...

Mark Zuckerberg's brainchild may finally be preparing for a highly anticipated IPO, long expected to take place sometime after April 2012. If this does indeed go through, groundbreaking would be a massive understatement.

The Wall Street Journal is reporting that the world's largest online social network is looking into raising as much as $10 billion in its IPO. The Journal cited people familiar with the matter but did not identify them by name. The amount would value Facebook at as much as $100 billion, according to the report. That's more than four times the market capitalization that Google Inc. had at the time of its 2004 IPO.

Seeming like the latest wave in upstart Internet companies, a few smaller social media companies have been entertaining the public stock market this year. Professional networking platform LinkedIn, would be considered the trailblazer, taking their talents to the public in May of this year (2011). Since then, the online deals site Groupon Inc., the Internet radio station Pandora Media Inc. and several others have gone public. Others, including the reviews site Yelp Inc. and the online game company Zynga Inc., are planning to do so in the nearer future.

Though hotly anticipated, the latest crop of Internet IPOs has not gone smoothly. Groupon's stock is now trading below its IPO price. It closed at $15.24 on Monday, down 23.8 percent from its $20 IPO price. Pandora has also fallen below its IPO price, though LinkedIn, among the few that's been profitable, is still well above it.

Either way, I'm putting my cards in this pool...


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