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Facebook wants a 2011 IPO for $100 bln valuation

While Zynga is processing reworked Stock options allocations while it is still aprivate company having postponed its IPO mid year uin face of market conditions, Facebook is filing documents for a quick 2011 sign off with a $100 bln valuation Yesterday’s news mentioned they wanted the IPO next year after Spring had officially come into the Economy

Image representing Facebook as depicted in Cru...

Image via CrunchBase

Facebook is based in Palo Alto, California and employees and investors have been trading shares on sharespost and other private company trading sites for pretty volatile valuations. Goldman Sachs led a private placement for the bank’s investors in 2009 lending a $50 bln valuation to the company , setting the stage for the resolution of the social media wars with Facebook clearly ahead in valuation by 4-5 times. revenues were $1 bln in 2010 and may grow even 3 times this year as its targeted advertising catches on

Twitter founders have moved on without the promised beat of Facebook and yet to break into tangible revenue while social media gaming has leveraged Facebook to the hilt and now zynga plans to move on to its independent portal for games like Mafia Wars, Cityville and Empires and Allies. Zynga accounting includes a lot of non trasditional accounting for Virtual goods, while Facebook accounting is more straight forward base on advertising as a source of revenue

Google is worth $200 bln today and Apple the biggest at more than $400 bln in market capitalization, both offering much higher revenues.

One wonders too if th ecompany is in a rush as Privacy issues again take centerstage for the cloud corporation At this time however, irrespective of lukewarm market response and capital from the Linkedin IPO back in play looking for cash investment, the Facebook has a clean chance to score the required $10 bln and leave pent up demand, but it is suspect if the valuations would stabilise at even half the listing price valuation, though a good exit for employees and select investors offered the shares

Groupon has been mired in accounting issues for its coupons business online and Neflix and Groupon have also hit a stalemate in revenues leading to  questions on their business model. Groupon is tradin g at almost 1/3 of its IPO price

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2 comments on “Facebook wants a 2011 IPO for $100 bln valuation

  1. Pingback: Facebook earns its growth (First 9 months revenues, 2011) | The Banking and Strategy Initiative

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    February 1, 2012

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This entry was posted on November 29, 2011 by in Financial Markets and tagged , , , , , , , .

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