Facebook $5 Billion Dollar IPO
Blog Date: 2/8/12
Author: Edwin Ayala , Business Management Major
Facebook recently filed papers with the SEC for a $5 billion IPO. This would be the biggest tech IPO since Google and analysts are projecting Facebook’s value to be between $80 and $100 billion. The IPO filing was triggered by Facebook’s hitting 500 shareholders, a number at which a company must start releasing financials or go public. Facebook has chosen the latter and shares are expected to begin trading in approximately a month. Analysts expect the money will be used for website advancements.
This would be the largest internet IPO in history, surpassing Google’s $1.9 billion launch in 2004. This launch would give Facebook financial dominance in the internet world as it tries to make its service even more widespread, a service that has already hit over 845 million users. This would also deal a big blow to Google, who is also trying to insert itself in the social media world by creating a rival social network called Plus.
Facebook is looking to list its stock under the ticker symbol “FB” on the New York Stock Exchange or the Nasdaq Stock Market. According to the filing, Zuckerburg will have final say on how 57% of his stocks votes. He has also set up two classes of stock that will ensure that he keeps control as Wall Street exerts pressure on his new company. Many of his employees will soon become millionaires as well as they have bought shares at lower prices than are liked to be valued. Facebook employed over 3000 people in 2011.
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