Social networking giant Facebook as postponed its initial public offering to late 2012, it has come to light.
People familiar with the company have said that Facebook will be launching its highly awaited IPO much later than earlier anticipated, Financial Times reveals.
Facebook has been rumoured to be planning to release an IPO either this year itself or by April 2012. The company’s recent private share trading has valued Facebook at more than $65 billion.
Sources have said that Facebook co-founder and CEO Mark Zuckerberg has decided to postpone the IPO till next September or even later than that so that the employees remain focused on product development rather than a big pay-out.
The sources said that while companies Groupon and Zynga have put their IPOs on hold due to market uncertainty, Facebook has decided to do so for internal reasons.
“There’s really no reason to rush a deal. The company doesn’t need the money. It is a little easier to focus when you’re private. They’ll go when they’re good and ready, not before. There are so many things you don’t have to do until you take public shareholder money,” Lise Buyer, one of the consultants who advised Google on its IPO told FT.