Is Facebook Ready to Go Public?
COMMENTARY | Facebook could file IPO paperwork as early as next Wednesday, according to reports released today. The popular social media network has been talking about going public for some time now and they are currently looking at a deal that would value the site somewhere between $75 billion to $100 billion, says the Wall Street Journal.
Morgan Stanley is close to winning the "lead left" position in the IPO. If Morgan Stanley becomes the lead underwriter for its IPO, experts say it would mark a setback for their rival Goldman Sachs Group Inc.
Investor demand for social media is higher with the public interest in social media at an all-time high. Those who use Facebook on a regular basis for business or pleasure can understand this value that is placed on the network, although the billions of dollars being put on the network seem astronomical to some.
A $10 billion Facebook offering would rank fourth among U.S. companies placing them below Visa, General Motors, and AT&T Wireless. At a $100 billion valuation, Facebook would be worth about the same as McDonald's Corp. and nearly half of Google Inc. so you can see that the valuation is an important part of the process.
But is Facebook ready to go public? The Street says that this is perfect timing, in fact.
"We expected them to file in the third to fourth week of January because they closed their prior quarter Dec. 31," said Sam Hamadeh, CEO of research firm PrivCo. "Now they get a full 120 days runway to take off with the IPO without showing any other quarterly numbers and filing any amendments."
I use Facebook on a daily basis for my business and also to keep in touch with friends and family. I landed a new job today via Facebook and one service that my business offers is "social media marketing." It's a booming business and I say there is no better time than right now for Facebook to go public. They've played the cards right and waited for the best opportunity to jump into the market. This could be a very profitable time for everyone involved.
Published by Lisa Mason - Featured Contributor in Technology
Lisa Mason is a freelance writer and social media marketer with more than 10 years of experience. As VP of Special Media for Social Media Sun, she makes sure that readers have access to the most relevant and... View profile
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4 Comments
Post a CommentIt's already too late..... - the fad is dying - or at least changing its demographic - look back - Yahoo, MySpace, Bebo, etc. etc. - where are they now?
Congratulations for your new job, Lisa :)
1 great big warm Grandma's apple pie, just out of the oven! A tall, cold glass of milk on the table and a napkin on my lap.
Bring it on!
I had heard it was happening in April. I guess I'm not up on social media news! I've been preoccupied.