Uberdownloads Blog
Facebook Files For $5 Billion IPO

“Will they?” or “Won’t they?”  Facebook has finally answered the hotly debated question by officially filing for an IPO on Wed., Feb. 1.

Facebook filed papers announcing its $5 billion initial public offering of stock in the world’s biggest social networking business. Facebook’s IPO is perhaps the Silicon Valley’s most widely anticipated stock offering in recent years.

For Facebook and its 27-year old co-founder, Mark Zuckerberg, the IPO represents an official transition from successful startup to one of the corporate giants.

Facebook’s IPO filing also stated that Facebook intends to trade under the ticker symbol “FB.” However, it has not been made clear which stock exchange Facebook will trade in.

While the stated $5 billion amount is smaller than anticipated, industry observers predicted Facebook might seek up to $10 billion. The $5 billion figure is preliminary, and Facebook could seek to revise the numbers as it prepares to begin selling stock this spring.

But the IPO documents make it clear that Facebook stocks will have 2 classes of shares, structured so that Zuckerberg and a small group of insiders remain in voting control.

Speculation surrounds the actual price per share. However, Facebook conducted its own valuation and shares were determined to be $29.73 per share at the end of 2011. The documents did not specify how many shares will be sold, their offering price, or the date they will be offered.

Industry sources expect Facebook’s stock offering will set the social networking giant’s overall value at $75 billion to $100 billion.

While details about the Facebook IPO are few and far between, the filing has opened up the company’s closely-guarded operations and finances. Facebook disclosed that it made $3.7 billion in revenue in 2011, with sales rising 88% from 2010.

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