Facebook could file for $US100b IPO this week – report
New Zealander at centre of social network's efforts to monetise its giant audience.
Facebook could file papers for an IPO as early as this Thursday NZ time, the Wall Street Journal reports.
Un-named sources say the social network will seek to raise $US7.5 billion to $US10 billion by floating 10% of its shares – valuing the company at $US75 billion to $US100 billion.
If Facebook does raise $US7.5 billion or more, it will be the largest tech IPO ever, and the fourth largest of all time.
A $US100 million valuation would be roughly half Google’s market cap, and a quarter that of Apple.
Facebook was founded eight years ago, and claims 800 million active users.
Private equity investors include founder Mark Zuckerberg, Goldman Sachs (which has onsold private equity shares to private investors in the US, Russia and elsewhere) and Microsoft (which bought a 1.6% stake in for $US240 million in 2007, a deal that valued Facebook at $US15 billion).
An IPO filing would reveal Facebook’s accounts, currently the subject of much speculation.
According to eMarketer, revenue increased from $US738 million in 2009 to $US3.8 billion last year, but it was unknown if the the social network was profitable.
New Zealander Mark D’Arcy is leading Facebook’s push to monetise its huge global audience.
Mr Darcy, an Auckland University of Technology (AUT) grad, was back in New Zealand last year with his previous employer, Warner, as part of the team that negotiated the tax-break and law-change deal for The Hobbit.
He now works as Facebook's director global creative solutions.
NBR staff
Mon, 30 Jan 2012
Mon, 30 Jan 2012
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Facebook could file for $US100b IPO this week – report
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