Facebook is to pay a fee of just 1.1 per cent of its initial public offering to its underwriters, say reports.
According to Reuters, news that the pay would be significantly less than the standard underwriting fee occurred during a meeting yesterday where Facebook executives stressed the importance of the engagement within its huge userbase.
Reports allege that the social networking site's underwriters would accept a fee much smaller than the average pay expected within the Wall Street circuit, due to being linked with Silicon Valley's largest ever IPO - not to mention the promise of being bankers in years to come to the most popular networking site in the world.
One of the participants who attended the meeting described the event as a useful opportunity for Wall Street analysts and bankers to meet with the various executives at Facebook, but declared that there was little new data exchanged over Facebook's business or operations. The meeting was held at its new corporate home base in Menlo Park, California.
"It was a good first step for establishing a relationship," said the attendee, whilst observing Facebook's invitation for a second meeting to take place in April.
The organisation, which is hoping to take on the likes of Google Inc and Yahoo Inc for online advertising, is planning to raise $5 billion in a closely-watched IPO that could place the company's value between $75 billion and $100 billion.