We're hiring

We love digital - Call
03332 207 677
and say hello - Mon - Fri, 9am - 5pm

Call 03332 207 677

James Perrin

Facebook IPO: Valuation Worth $100 Billion

14th Jun 2011 Social Media, Facebook, News, Industry News, Social Media 1 minute to read

The leading social network company, Facebook, are aiming to go public in the first quarter of 2012 at an eye watering valuation of $100 billion. Facebook’s IPO is being described as the most eagerly anticipated stock debut ever.

The Palo Alto based company boasts 600 million users and is currently trading at a valuation of $80 billion (a figure based on current investment levels). However as the company surpasses the 500 investor threshold, their valuation is set to soar.

The IPO was reported by CNBC who say that it is likely to be triggered by what is known as the ‘500 rule’. This essentially states that once a private company has more than 500 investors, they must start to operate as a public company by releasing quarterly financial figures to the Securities and Exchange Commission.

Facebook has declined to comment regarding speculation over their IPO, but the Chief Operating Officer Sheryl Sandberg revealed during a conference last year that an IPO was “the next thing that happens” and it looked “Inevitable.”

As a company looks towards an IPO, especially one the size of Facebook, banks battle it out to direct the IPO. Goldman Sachs are currently in the driving seat thanks to their recent investment in the social networking company, but other big banks such as J.P Morgan and Morgan Stanley shouldn’t be ruled out.

There is certainly a degree of pressure for Facebook to go public, despite the perceived reluctance of CEO Mark Zuckerberg. If they do cross the 500 investor mark, they will have to start disclosing their financial information publicly. If they do, there are certainly benefits to be reaped.

However there is growing criticism towards the social network leader, as their business model comes into question as well as the actual operational aspects of Facebook. It has come under constant scrutiny over privacy, as recent as last week with the ‘Facial Recognition’ saga [See: Is Facebook’s Facial Recognition an Invasion of Privacy Too Far?]

If Facebook’s popularity dwindles, is a $100 billion valuation really truly reflective or could this be the clearest indication of a second .com bubble?

Share this post

Free Whitepaper Facebook Guide: Creating, Optimising, Advertising & Analysing

What do you think?

  • aspect-ratio
    Dan Rice

    What is the Difference Between Owned, Earned and Paid Media

    Search engine technology is evolving, and so is the digital marketing industry. The more experienced professionals amongst you may remember the days of gleefully stuffing keywords into your copy to boost your rankings, blindly spamming strangers to join your email lists and easily securing media coverage for your thinly veiled advertisements.

    (more…)

    Dan Rice
    @iamdanrice
    16th Aug 2018
    Content Marketing
  • aspect-ratio site-speed-blog
    Ross Momtahan

    A Guide To Page Speed Metrics

    Site speed is an important area of website optimisation that people working in the world of Search Engine Optimisation are becoming increasingly concerned about.

    With Google’s site speed update being rolled out to all users on July 9th, now is the time to audit your site speed if you haven’t done it for a while. (more…)

    Ross Momtahan
    20th Jul 2018
    SEO

Digital Ideas Monthly

Sign up now and get our free monthly email. It’s filled with our favourite pieces of the news from the industry, SEO, PPC, Social Media and more. And, don’t forget - it’s free, so why haven’t you signed up already?
  • We’ve got some really cool stuff we want to share with you. So you don’t miss out, let us know which of the following you want us to email you about going forward:
  • This field is for validation purposes and should be left unchanged.