Facebook IPO in April, rumours suggest

Facebook could finally be venturing onto the stock market with a much talked about Initial Public Offering (IPO) rumoured to be worth $10 billion (£6.41 billion).

Reports are rife that Facebook are looking to file the IPO sometime between April and June next year, and if the speculation on the figures is correct, it would place a value of around $100 billion on the site.

Should Facebook manage to raise $10 billion, then the IPO would be amongst the highest on record in the technology sector.

If the $100 billion valuation proves to be correct, Facebook would be ahead of tech companies such as Cisco ($96.8 billion) and Amazon ($88.3 billion), but still trailing internet and software giants Google ($190 billion) and Microsoft ($209 billion).

It has been expected that the site would go public; rumours circulated that the IPO would take place around October 2011 at first, but this was dismissed by Zuckerberg who said that the company would go public when it made the most sense.

As it has now crossed the threshold of having more than 500 shareholders, Facebook has to begin filing financial information publicly in April 2012.

Given this, it makes sense that this is the ideal time for an IPO but although Facebook is in discussions with the Securities and Exchange Commission, Zuckerberg has yet to make any final decisions, according to a report by the Wall Street Journal.

The report cites “people familiar with the matter” as the source for the rumours, which states that the social media site continues to be “elusive about a commitment to specific banks.”

Whilst Facebook will have to publish financial information in April without an IPO, it’s thought that doing so could leave “the company at a serious disadvantage, since they would have most of the liability that comes with being a public company, but lose out on the fundraising benefits of a public offering.”

Facebook, of course, have said nothing to either confirm or deny the speculation and many reports have again suggested that the IPO could still materialise this year, perhaps in December.

However, many industry insiders have dismissed this and said that given all the facts, April is the earliest we are likely to see the IPO.

Facebook IPO in April, rumours suggest

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