Finally Facebook Files for $5 Billion IPO! A Brief Overview

Mark Zuckerberg’s Facebook was the significant subject of discussions for the folks who deal in stocks and were waiting impatiently when Facebook files Initial Public Offering (IPO) on Stock market to go public. Finally, Facebook today files for $5 billion IPO … a huge public offering which was being expected by most of the tech analysts and market gurus.

Facebook IPO on the Stock Market was highly anticipated and awaited by the tech world, following after Google’s IPO launch in 2004, with Facebook’s desire to raise approx. $5 billion. It seems that this IPO is quite reasonable by world’s largest social network “Facebook” and it would smoothly raise the capital within a few weeks that will value the company at approx. $100 meaning 26^th in the world just behind the McDonalds.

Facebook was launched by Mark Zuckerberg eight years ago, which got tremendous popularity and acceptance as a superb social network during last few years which can be seen by company’s latest financial results; Facebook earned a huge revenue of $4.3 billion in 2010. Facebook has more than 850 million registered and active members. Most amazingly, half of the population of UK is the registered member of this giant social network. So we can easily predict that Facebook would perform at an amazing pace in stock market since the worth of a company is mainly based on its user-base.

Facebook IPO is a big deal which has been initially supported by the by leading investment bank Morgan Stanley, in collaboration with Goldman Sachs and J.P. Morgan. Facebook shares would be available for trading in stock market by May 2012. But the most interesting aspect on which market analysts are focusing is the question whether Facebook really worth $100 billion? If we expect the lowest point of the expected valuation, the world’s biggest social site would have a value than the Disney Corporation.

The best advantage of the IPO for Facebook is the immediate cash generation, which will make the company enable to pay off its early investors and possibly to invest in buying few smaller enterprises to extend its business to next highest valuation.

It would be just like the process Google used by generating cash through its initial public offering in 2004 and then acquired companies like YouTube and DoubleClick which remarkably became the big earning hands for this biggest search engine.

Now, Facebook has officially filed its IPO and all tech experts, market gurus, and Facebook fans are looking towards Mark Zuckerberg to see how he manages the whole proceedings for generating huge amount of pretty bucks for the company and its shareholders.

Via: SEC

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Finally Facebook Files for $5 Billion IPO! A Brief Overview

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