Facebook IPO Doesn't Look Likely Until 2012
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Price: $393.82 -1.82%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: +14.7%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: +14.7%
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Facebook looks to be continuing down the path of least resistance, as the company will reportedly put off an initial public offering until 2012, according to a Bloomberg article which cited three people close to the matter.
The sources indicated that the move to push back the IPO would give Chief Executive Officer Mark Zuckerberg an opportunity to build Facebook’s user base and boost sales, making the company more valuable in a public sale.
Facebook is the world’s most popular social networking Web site, surpassing 500 million users this month.
Two of the sources cited in the Bloomberg report said that the company is valued at $24.9 billion, and that it may double its sales to $1.4 billion in 2010.
In a television interview earlier this month, Zuckerberg said that the company would go public “when it makes sense.”
In January, Jim Breyer, a member of the company’s board said that Facebook is not focused on an IPO for 2010, leading investors to speculate that the company would go public in 2011. The management team at Facebook is focused on trying to bring in more developers to boost up the site content to continue to attract users.
The company has been pressured by investment partners that include Microsoft Corp. (NASDAQ: MSFT) and Accel Partners to go public to increase its value to private shareholders.
The sources indicated that the move to push back the IPO would give Chief Executive Officer Mark Zuckerberg an opportunity to build Facebook’s user base and boost sales, making the company more valuable in a public sale.
Facebook is the world’s most popular social networking Web site, surpassing 500 million users this month.
Two of the sources cited in the Bloomberg report said that the company is valued at $24.9 billion, and that it may double its sales to $1.4 billion in 2010.
In a television interview earlier this month, Zuckerberg said that the company would go public “when it makes sense.”
In January, Jim Breyer, a member of the company’s board said that Facebook is not focused on an IPO for 2010, leading investors to speculate that the company would go public in 2011. The management team at Facebook is focused on trying to bring in more developers to boost up the site content to continue to attract users.
The company has been pressured by investment partners that include Microsoft Corp. (NASDAQ: MSFT) and Accel Partners to go public to increase its value to private shareholders.
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