November 30th, 2011
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Facebook to seek IPO in 2012

facebookCalifornia: Facebook, the world’s largest Internet social networking site, launched in February 2004, operated and privately owned by Facebook, Inc is considering raising about $10 billion in an initial public offering that would value the site at more than $100 billion.

The company might file for the IPO before the end of the year; however the exact timing for the filing had not been determined. Facebook decided to wait until 2012 for its IPO to give chief executive Mark Zuckerberg more time to gain users and boost sales.

Facebook’s $100 billion valuation would be twice as high as it was in January, when the company announced a $1.5 billion investment from Goldman Sachs Group and other backers. Facebook aims to capitalize on strong demand for social- networking IPOs, said Josef Schuster, founder of Chicago-based IPOX Schuster LLC.

“It’s obviously a very steep valuation,” said Schuster, whose firm invests in IPOs and oversees about $2.5 billion in assets. “They are realizing their window of opportunity, and they want to do it sooner rather than later.”

Facebook, which has 800 million users, is increasing its focus on mobile technology, aiming to take advantage of the shift to smartphones and tablets. The group expects its next 1 billion users to come mainly from mobile devices, rather than desktop computers. Facebook spokesman Jonathan Thaw however, declined to comment on the IPO plans.


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