Facebook expected to file $100 Billion IPO valuation within a year

Facebook expected to file $100 Billion IPO valuation within a year

Summary: Even with traffic falling around the globe, Facebook is expected to declare a very hefty IPO valuation within the next year.

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Even with traffic falling around the globe, Facebook is expected to declare a very hefty IPO valuation within the next year.

Rumors have been circulating for years about when the private corporation would finally go public. CNBC reports, based on unnamed "people familiar with the matter," that the social networking giant will file an IPO valuation of $100 billion by the end of the first quarter of 2012.

Although, the decision might be forced upon Facebook rather than something the company has been planning on:

The company’s IPO, were it to happen by next spring, would probably be triggered by a section of the 1934 Securities and Exchange Act known as “the 500 rule,” these people say.

Essentially, the rule mandates that once a private company has more than 500 investors, it must begin releasing quarterly financial information to the Securities and Exchange Commission, just as public companies do.

Facebook hasn't commented publicly on the matter, but CNBC adds that Facebook will "cross the 500-investor threshold this year."

The closest Facebook has come to an official answer was when CEO Mark Zuckerberg was asked at the e-G8 conference in Paris last month about whether or not he would be taking his company public. Zuckerberg coyly responded, "Not yet."

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15 comments
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  • a bubble in the making

    buying internet hot air didn't get us too far a decade ago.
    Linux Geek
    • RE: Facebook expected to file $100 Billion IPO valuation within a year

      @Linux Geek Indeed! As a short-time investement is OK though. Look at Google. It also depends on your objectives.
      pupkin_z
      • RE: Facebook expected to file $100 Billion IPO valuation within a year

        Thanks
        azhizhina
    • RE: Facebook expected to file $100 Billion IPO valuation within a year

      @Linux Geek Sell short! Sell short!
      jgm@...
  • RE: Facebook expected to file $100 Billion IPO valuation within a year

    Still, it might be good to get in early if we're "lucky enough" to do so. As we know, irrational market exuberance can carry a stock a long way.
    ken.trock@...
    • RE: Facebook expected to file $100 Billion IPO valuation within a year

      @ken.trock@... I think if you get in at IPO, you are getting in too late... Those early investors are using IPO as their exit strategy... It's the only way they can get out after sinking in so much money...
      whiskeylima@...
  • Just another fleecing of the sheep by the GS wolves.

    GS will be right in the middle milking the stupid.
    Reality Bites
  • Time to think

    People are realizing they are loosing real friendship to the virtual friendship which is not a good sign.
    kxs5020
  • RE: Facebook expected to file $100 Billion IPO valuation within a year

    More importantly, only 5 comments on this story. Compare that with Google's IPO. The interest was electric. My guess is whatever price they pitch at, the stock value will actually fall. Why? Vanity will play a huge part in the valuation. So, expect it to be artificially high.
    Graham Ellison
  • RE: Facebook expected to file $100 Billion IPO valuation within a year

    So what exactly is being "valued?" Hot air, and even "internet hot air" is free. Yeah, a few early in and out speculators will make a killing. The rest of the bandwagen jumpers will get killed (financially).
    7mgte
  • RE: Facebook expected to file $100 Billion IPO valuation within a year

    I suspect that the "sources" claiming an early Facebook IPO are actually Google or Yahoo spin doctors. Same ones that are behind an app that scares Facebook users into removing their profile photos lest they be manipulated into compromising videos: http://www.brandedalive.com
    EdwardSamara
  • RE: Facebook expected to file $100 Billion IPO valuation within a year

    .com bubble 2.0?
    Tommy S.
  • RE: Facebook expected to file $100 Billion IPO valuation within a year

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    talih
  • RE: Facebook expected to file $100 Billion IPO valuation within a year

    What is $100 million is worth for Facebook itself? I thing not that much <a style="text-decoration: none; color: #333333;" href="http://www.flowerdeliverylosangeles.org">Flower Delivery Los Angeles</a>
    azhizhina
  • Reporting Requirements & Such Disclosures

    Wonder what the names will be? Income as well, to see how FB is getting paid and what they provided.
    donnydo77@...