Social network giant Facebook Inc. has unveiled a $96 billion valuation goal for its public offering, scheduled for May 18, reports The Wall Street Journal. If reached, this would set a new debut record amongst American companies.
Facebook seems to be growing exponentially, with over 900 million users and endless associations with advertisers, game developers and other big brands such as Instagram, so you’d think its worth wouldn’t be up for debate. But there has been speculation that its rate of expansion is slowing down, as its profits fell 6% from the last quarter. Though it promises more growth, its users are averse to more advertising and large international markets like China are off limits to social networks.
Mark Zuckerberg, the company’s founder, is selling some of his stake in the company to cover the massive taxes the venture has left him with, but will remain the majority shareholder with 57% voting power.
The final pricing of the company will probably take place within the next two weeks, when it will be trading as FB on the Nasdaq Stock Market.
- Facebook sets IPO price range at $28-$35 per share (foxbusiness.com)
- Updated Facebook Ipo Valuation Terms (fb) (247wallst.com)
- Facebook must convince investors of its value (sfgate.com)