Many thought Mark Zuckerberg was stupid not to sell Facebook for $1 billion to Yahoo right before the financial melt down around 2007. Perhaps the financial crisis was a blessing in disguise, as since there was no demand and pressure for Facebook to go public they could focus on their actual business. Now of course Zuckerberg looks like a genius for not selling and waiting to IPO. Now Facebook is being valued at over $50 billion by the likes of Goldman Sachs and some are say it could exceed $100 billion.
With the Facebook initial public offering, Zuckerberg’s paper wealth will finally become real wealth. And it’s not just Zuckerberg who is set to become rich, there’s a gang of Facebook employees and investors who are eager for the day to come. Looks like that day will come early next year and could be one of the biggest IPOs ever. And what with the recent IPOs of the likes of LinkedIn and GroupOn, short floats could make the stock styrocket.
The truth is that Facebook is going to go public, and relatively soon. Because it’s surpassed the SEC’s 500 shareholder limit, the company has to disclose its financials in April. That doesn’t mean it has to IPO, but we understand the company plans to bite the bullet and go for it around then anyway.
As for whether or not Facebook will file its S-1 very soon, we’re skeptical. A source close to the IPO process tells us Facebook has not yet decided which banks will underwrite the offering. That’s a step that has to happen before the S-1 gets written and published.
Facebook employees who joined the company three or four or more years ago have endured a lovely, teasing kind of torture. (Business Insider)
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