May 5, 2012- On Thursday, Facebook announced it would be selling shares in the company for somewhere between $29 and $35, making the valuation of the company from $77 billion to $96 billion. That would make Facebook the highest valued company to ever go public. United Parcel Service is the current holder of that record when it went public with a company valuation of $60.2 billion in 1999.
Facebook has grown exponentially since its launch in 2004 to just 250,000 users, then 500,000 and in 2012 was up to 900 million. Analysts say the site will reach 1 billion users some time during this year. Some people are skeptical about the company value and the IPO. Revenue has dropped by 6% from the previous quarter. Mark Zuckerberg the company’s CEO has yet to provide a business model that shows the company will be successful over the long term.
To help rev up the excitement about the IPO and convince investors that the company is deserving of the high valuation, executives from Facebook are holding meetings with bankers and analysts at JP Morgan, which is also helping in the underwriting of the IPO. A video has also been released by the company, which discussed the reach of the company.