Skip to main content

Facebook IPO may Land in 2012

Social media giant Facebook could finally go public this year, despite the company not revealing anything concrete as of now.

According to Nick Einhorn, a prominent analyst at Renaissance Capital, it is highly likely that Facebook will be filing its IPO paperwork with the US SEC (Security and Exchange Commission), sometime during the first quarter of this year. And, that should soon be followed by trading on Wall Street, claimed Einhorn.

The company, as of now, is reportedly pondering over the idea of taking every possible measure to value the company at an overwhelming $100 billion. If Facebook achieves that goal, it will make the company's IPO (initial public offering) the largest ever for an Internet outfit in the history.

Facebook has changed the way one communicates over the Internet through its long-term goals. The IPO, if raised, may carry some serious consequences with it as investors at Wall Street might be looking at short-term goals, which Facebook might not be able to deliver.

"Facebook cannot succeed at becoming the world's main communication platform and produce the short-term results that Wall Street wants," David Kirkpatrick, the author of a history of the company called The Facebook Effect, stated, according to a report by the Telegraph (opens in new tab).

"Zuckerberg has sought to delay an IPO for as long as possible," he added.

It is speculated that with a reported $4 billion dollars worth of revenue last year and the large user base, Facebook might sell its share through Auction just like Google had done back in 2004.

Ravi Mandalia

Ravi Mandalla was ITProPortal's Sub Editor (and a contributing writer) for two years from 2011. Based in Ahmedabad, India, Ravi is now the owner and founder of Parity Media Pvt. Ltd., a news and media company, which specializes in online publishing, technology news and analysis, reviews, web site traffic growth, web site UI. Ravi lists his specialist subjects as: Enterprise, IT, Technology, Gadgets, Business, High Net Worth Individuals, Online Publishing, Advertising, Marketing, Social Media, News, Reviews, Audio, Video, and Multi-Media. He has also previously worked as Dy. Manager - IT Security at (n)Code Solutions.