Facebook To Go Public in 2012?

  • Share
  • Read Later

The Wall Street Journal is reporting that Facebook is getting ready to go public and increase their shareholders above 500 members in 2012. Details were revealed in a 100-page document sent to a select group of potential investors.The company is currently under a SEC investigation that is looking into claims that the company has gone over 499 shareholders, the maximum amount of invested individuals allowed for a company to  remain privately owned. Though CEO Mark Zuckerberg has claimed that he doesn’t want to go public anytime soon, but since Facebook optioned an equity offering of as much as $1.5 billion through Goldman Sacs Group Inc. questions have been raised. The offer was made to Goldman partners and selected clients and has led to a $50 billion valuation of the social networking company. It was previously valued at $10 billion in mid-2009.

Taking the company public, however, means that Facebook will have to report their revenue, profits, losses and executive compensation and be subject to SEC regulations including divulging business strategies, according to the San Francisco Chronicle. Previously, going public gave a company legitimacy which encouraged more people to invest in the company and help the business grow. However, the social network has been able to do that without the traditional verification.

More on TIME.com:

Sources: LinkedIn To Go Public in 2011, Trying To Beat Facebook To It

Customize Your Profile Picture With Schweppes Facebook App

C-SPAN Goes Social: Streams 112th Congress Live on Facebook

0 comments
Sort: Newest | Oldest