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Facebook IPO, The Value of Personal Data

Facebook IPO

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

  1. Facebook will file to raise at least $5 billion through an IPO – the amount may go up to $10 billion.
  2. The social networking site could be valued at up to $100 billion.
  3. Morgan Stanley will be the lead manager.
  4. Investment banks may generate as much as $500 million in fees.
  5. May be the biggest ever IPO by an internet or technology company, topping Infineon Technolories‘ $5.85 billion in 2000
  6. Mark Zuckerberg, founder-CEO, owns around 24% stake, which could be worth $24 billion.
  7. Accel Partners and Digital Sky Technologies own around 10% each.
  8. Other investors include Zuckerberg’s Harvard University roommate Dustin Moskovitz, Napster founder Sean Parker, Microsoft, U2’s Bono ans Goldman Sachs.
  9. 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.

About Social Guy

Social Guy
Social Guy is a tech buff, online entrepreneur and social animal. He is best-known as the Editor-in-Chief of SOCIABLE, the world’s leading social media news source. Social Guy's 7+ year career with SOCIABLE began when he joined as a blogger in August 2007. Guy’s work has been quoted or featured in media such as ZDNet, Examiner, Marketwatch, PC Magazine, Wired, CNET, and The New York Times.