Tuesday, January 31, 2012

IPO of Facebook

Facebook will start the process of becoming a public company listed on the stock this week. Reports say, the stock valuations of social networking site was estimated at U.S. $ 75-100 billion.

According to the Financial Times and the Wall Street Journal, Facebook plans
propose a number of documents related to go public plans to the regulatory capital markets agency and financial institutions of the United States on Wednesday, February, 1, 2012.

According to the report document, the Facebook's plan is going to be one of the largest stock sales on Wall Street. Funds are likely will be achieved this year about U.S. $ 10 billion.

This figure makes the funds that achieved U.S. $ 1.9 billion by
Google on the stock when it took off shares in 2004 looked very small. But stock sales revenue gained by Facebook is still losing far than the revenues of U.S. $ 20 billion, which obtains by the cars manufacturer General Motors in November 2010.

As reported by BBC.co.uk website, mentioned a number of people estimates
Morgan Stanley will be the lead underwriter. Goldman Sachs has also estimated that many involved in the sale of Facebook shares.

Rumors surrounding the plan of initial public offering (IPO) of Facebook have been circulating for months. Sales value of shares would makes up one of the world's largest companies based on market capitalization.

As a private company, Facebook has no obligations
reported balance sheet. However, in January last year, documents that
delivered by Goldman Sachs for its clients show up
reported a net profit of U.S. $ 355 million with revenues of U.S. $ 1.2
billion in the first nine months of fiscal year 2010. Most of the revenue derived from advertising.

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