February 2, 2012- Facebook, the giant social networking site, has filed for an IPO. The initial public offering could put the company’s value at close to $100 billion. The IPO may end up as one of the largest stock market IPOs of all time for Web stocks.
Analysts were surprised when the company filed and announced its revenues for 2011 were $3.7 billion. That figure was short of what was expected. However, Facebook still should be valued in the upcoming IPO at $75 to $100 billion.
The company announced in its securities filing for the IPO that it was seeking $5 billion. That figure is normally just a pre-set placeholder and most likely will be changed. People close to Facebook believe the company wants to raise up to $10 billion this spring with the IPO.
Even though the company announced they were undergoing tremendous growth, its figures were lower than expected. Its revenue of $3.71 billion was up from 2010 revenue of $1.97 billion. Outsiders had placed estimates of its 2011 revenue at over $4.25 billion.
CEO Mark Zuckerberg said in a statement that the company was going to continual building products instead of optimizing for better revenue growth. The statement said, “We do not provide services to earn money, we make money in order to provide better services.”
The statement ended by saying, “Today more people want to use services from businesses that have a belief in something that goes beyond just maximizing its profits.”