Get ready, stock market, cause’ here comes Facebook. In a report from CNBC, the social networking site Facebook is said to be preparing documents that will lead to an Initial Public Offering of its company, a valuation of which could top $100 billion. That’s a who heck of a lot of cash, says the Securities and Exchange Commission, their requirement for companies like Facebook to disclose financial information if they’ve got more than 500 private investors reportedly a big factor in Facebook timing their IPO in such a way.
Additionally it appears that internally there’s been some pressure from employees disheartened by their inability to sell their shares on the secondary market. This public offering, you should know, is not the first chance anyone in the world has had to own a bit of Facebook. Recently SharesPost, a private exchange that buys shares of non-public companies, sold a bit of the company: 100,000 shares to be exact, for $3.4 million, putting Facebook’s total valuation at $85 billion.
In similar news, General Atlantic, (aka a $17 billion investment firm,) dropped some cash on the big blue internet company this past March. They currently own 1/10th of Facebook that, back in March, placed the value of the company at $65 billion. Before March, Facebook was apparently worth $50 billion, this just weeks before the General Atlantic deal, this number coming from a separate deal organized by Goldman Sachs in which clients of theirs invested $1.5 billion in the company. Seems like Facebook is growing pretty quick, so says we.
What do you think? Will you invest in Facebook? Seem like a sound investment to you? I might just have to drop a few bucks on ol Zuck, see what he does with it.
Also be sure to check out Twitter and Facebook Must Learn from LinkdIn’s IPO Success by none other than analyst Ben Bajarin.