Facebook To IPO With A Valuation Of $100 Billion

Facebook To IPO With A Valuation Of $100 Billion

CNBC is reporting that Facebook will likely go public the during first quarter of 2012. That’s right, soon you’ll be able to own a chunk of the world’s largest social network.  This will likely be a pretty big IPO, many are anticipating Facebook’s valuation to reach or exceed $100 billion.

Facebook has received a lot of money from a lot of private investors this year.  Once they acquire capitol from 500 different investors, they will be obligated to begin filing quarterly financials even though they are not publicly traded. Many people familiar with the matter expect Facebook to IPO before they are bound to this mandate.

Goldman Sachs (who has $450 million invested in the social giant) is expected to underwrite the IPO.  Facebook declined to comment on any details of an IPO, however, last month, Zuckerberg’s COO Sheryl Sandberg stated that a Facebook IPO is “inevitable”.

Let’s put Facebook’s predicted $100 billion valuation into perspective here.  Currently, Amazon (AMZN), the worlds largest online retailer is worth $84.21 Billion.  Netflix (NFLX), the world’s greatest movie rental service, is worth a mere 13.51 Billion in comparison.

Many think Facebook can surpass Google (GOOG), who currently weighs in at $162 Billion.  What do you think, are you anxious to buy a piece of arguably the fastest growing company in the world?  Or, do you think it’s all a bunch of hype?   I’m a little skeptical, but deep down I think there’s a lot of money to be made here.

Here’s what the analysts at CNBC are saying:


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