Facebook Set to Float on Stock Exchange
http://dervishcom.blogspot.com/2011/11/facebook-set-to-float-on-stock-exchange.html
Facebook will float on the stock exchange next year in a share offering which could raise as much as £63billion, it has been claimed. If it goes ahead it will be the biggest consumer technology public offering in history.
Reid Hoffman, the co-founder of LinkedIn, said in an interview that he expects the company to be listed on the stock exchange in the 'first half of next year'. The social networking site was co-founded by Mark Zuckerberg, 27, when he was at Harvard University seven years ago.
Mr Hoffman is a major investor in the site and has significant holdings in a number of other web companies. As a private company, Facebook is limited to having just 500 shareholders.
The U.S. regulator, the Securities and Exchange Commission, has put them under pressure to disclose how many people have a stake in the company. They have to make a declaration by next April and analysts have said it would be the perfect time to go public.
Analysts believe that Facebook could be given a valuation of as much as $100bn - or £63bn - if they to announced a floatation. Mr Hoffman told the Sunday Telegraph he believes the company will go public as a means to raise capital.
He said: 'I suspect that Mark (Zuckerberg) will choose to go public because the company has to put in a lot of financial work in order to make the necessary filings and so he might as well make sure he benefits employees and ultimately the company from the level of work that’s already involved.
'Going public would benefit Facebook in lots of ways - namely having public currency to do acquisitions.
'So Mark (Zuckerberg) might as well get the benefit as well as the cost.'
Mr Zuckerberg suggested in an interview last month that if Facebook went public it would be possible to reward staff with 'equity and options'. Facebook has not commented on the speculation.
Reid Hoffman, the co-founder of LinkedIn, said in an interview that he expects the company to be listed on the stock exchange in the 'first half of next year'. The social networking site was co-founded by Mark Zuckerberg, 27, when he was at Harvard University seven years ago.
Mr Hoffman is a major investor in the site and has significant holdings in a number of other web companies. As a private company, Facebook is limited to having just 500 shareholders.
The U.S. regulator, the Securities and Exchange Commission, has put them under pressure to disclose how many people have a stake in the company. They have to make a declaration by next April and analysts have said it would be the perfect time to go public.
Analysts believe that Facebook could be given a valuation of as much as $100bn - or £63bn - if they to announced a floatation. Mr Hoffman told the Sunday Telegraph he believes the company will go public as a means to raise capital.
He said: 'I suspect that Mark (Zuckerberg) will choose to go public because the company has to put in a lot of financial work in order to make the necessary filings and so he might as well make sure he benefits employees and ultimately the company from the level of work that’s already involved.
'Going public would benefit Facebook in lots of ways - namely having public currency to do acquisitions.
'So Mark (Zuckerberg) might as well get the benefit as well as the cost.'
Mr Zuckerberg suggested in an interview last month that if Facebook went public it would be possible to reward staff with 'equity and options'. Facebook has not commented on the speculation.
