Facebook, the largest online social networking site, is going to file for an IPO (Initial Public Offering) on Wednesday that will finally value the company at $75 billion to $100 billion, cashing in on the fuel that powers the engine of Internet commerce: Personal Data.
Facebook is considered so precious because it is more than the sum of its users. More than the world’s largest social network, it is a fast-churning data machine that captures and processes every click and interaction on its platform.
Poking the Markets : Few Facts
- Facebook will file to raise at least $5 billion through an IPO – the amount may go up to $10 billion.
- The social networking site could be valued at up to $100 billion.
- Morgan Stanley will be the lead manager.
- Investment banks may generate as much as $500 million in fees.
- May be the biggest ever IPO by an internet or technology company, topping Infineon Technolories‘ $5.85 billion in 2000
- Mark Zuckerberg, founder-CEO, owns around 24% stake, which could be worth $24 billion.
- Accel Partners and Digital Sky Technologies own around 10% each.
- Other investors include Zuckerberg’s Harvard University roommate Dustin Moskovitz, Napster founder Sean Parker, Microsoft, U2’s Bono ans Goldman Sachs.
- It is estimated to have earned a global revenue of $4.27 billion in 2011, mostly from online advertising.
Facebook’s offering is “an American milestone,” said Lawrence H. Summers, the former Treasury secretary, who has been a mentor to Sheryl Sandberg, Facebook’s chief operating officer, and knows Mr. Zuckerberg.
In some ways, the Facebook offering is a test of how valuable the social model of the internet could be.