Facebook Set to Break Records with IPO

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Facebook’s heavily anticipated initial public offering could raise up to $US10 billion and secure a market valuation of between $US75 and $US100 billion.

Facebook could file for its initial public offering as early as this Wednesday, according to reports by The Wall Street Journal. The IPO, which could raise up to $US10 billion and value the social networking giant between $US75 and $US100 billion, represents a watershed moment for the Internet industry.

The move will smash the previous record for a tech IPO, set by Google in 2004, and see Facebook rank fourth among IPOs for US companies, behind Visa, General Motors and AT&T Wireless.

The social networking giant has lured 800 million members and transformed the way we communicate in just eight years. The company derives the bulk of its revenue from its advertising business, with brands jostling for the chance to engage customers with display ads and fan pages. Research firm eMarketer estimates that Facebook has grown its global advertising revenue from $US738 million in 2009 to $US3.8 billion in 2011.

The company’s final valuation will be informed by various factors, including the IPO market, the state of the European econonomy and investor interest in social media.

Article by Neha Kale

Neha is a writer and editor for The Media Pad, publisher of Power Retail. She has a background in business, arts and film journalism and an interest in new media and digital strategy. She is looking forward to exploring how retailers are impacted by the online space for Power Retail. Neha is a magazine junkie whose other addictions include coffee, travel and live music. She likes to run but has a long-time allergy to team sports.