And just like that, everyone’s Newsfeed was cluttered with murmurings about how they need to buy Facebook stock now. According to the Wall Street Journal, Facebook is currently targeting its initial public offering launch for early next year. If the fat lady sings, the social networking company could see an IPO come to fruition somewhere between April and June 2012.
The company reportedly wants to raise at least $10 billion in its upcoming IPO, according to anonymous sources. An offering of this magnitude could push Facebook past a $100 billion valuation, outstripping other major corporations.
But despite the potential good news for the company, investors have remained a tad skeptical of internet businesses, given some recent launches. The Journal notes that:
The most recent IPO, an $805 million float of discount-deal service Groupon Inc. on Nov. 3, has plummeted 42% in price in the past five trading days after surging in its first day of trading. Business-networking service LinkedIn Corp., whose stock more than doubled from its IPO price on its first day of trading May 19, has since fallen 36%, but remains 33% above its IPO.
Only three American companies have ever completed an IPO worth more than $10 billion: Visa Inc., General Motors Co. and AT&T Wireless Services. Google’s $1.9 billion IPO back in 2004 was the largest American Internet IPO. If Facebook were to break the $10 billion mark, it would make it the largest IPO by any technology or Internet company, according to the Journal.
Facebook didn’t have much to say about the report. “We’re not going to participate in speculation about an IPO,” the company said.