Facebook has been around since 2004, and has had investors since the beginning. The rumors keep swirling that Facebook is set to make an IPO, and according to sources cited by the Wall Street Journal, that IPO could come within the next five months. Sources have tipped that Facebook is targeting sometime between April and June for its IPO. According to rumors, Facebook could raise as much as $10 billion.
If Facebook raises the $10 billion, that would value the social network somewhere between $75 billion and $100 billion according to the Wall Street Journal sources. The sources also claim that the social network has chosen Morgan Stanley as lead on the IPO. However, the Goldman Sachs Group will also play a part according to people familiar with the matter. Facebook could possibly file the IPO documents with the Securities and Exchange Commission as early as next Wednesday.
However, the sources also claim that Facebook is considering filing the documents the following week. If Facebook raises the $10 billion with its IPO, that would make it the fourth largest IPO ever for US companies and would make it the largest Internet-based IPO ever, putting it ahead of Google’s $1.9 billion IPO in 2004. Every time I hear talk of Facebook making an IPO, I wonder why with the boat loads of money Facebook is sitting on.
Apparently, Zuckerberg is under external pressure to make an IPO. It was determined in 2010 that by the end of 2011 Facebook would have 500 shareholders, which would trigger regulatory requirements to publicly file financial details. Zuckerberg decided if Facebook was going to have to file financial details anyway, the IPO might as well be made claim people familiar with the situation.