Chillin' out till it needs to be funded
And the NYSE ticker for the social Media juggernaut is FB, as Morgan Stanley gets Left lead and Goldman Sachs get right lead. In the IPO filing due tomorrow, the basics to be maintained are simple the $1.1 bln revenue for the year ( $883 mln reported pre Zynga IPO) is wortha $10 bln valuation for the IPO on par for its trading on the private share markets till date and thus unlikely to pop higher on such a small base of revenue for the week of opening that will be clear after the filing details are made public. Though the offer filing is opened tomorrow with such a low ball opening figure of $5 bln of increasing the IPO dollar demand, it is unlikely that current investors will be allowed to sell in the IPO either
Even if the filing is for $5 bln, it is easily going to be extended to $8 bln with the progress in pricing, that happens probably after one month. Morgan Stanley’s lead left could be a factor of its distribution strengths and its purchase of Saloman Smith Barney
As of now it seems the one that got Google will have to wait to trim down the internet company’s market capitalisation as analysts
discover Facebook;s many flaws including much hyoed targeted advertising that is not going to take it to $100 bln in revenues or the social gaming partners like Zynga which already want out of the 30% sharing of revenues thru Facebook credits.
whatever it is, we’ll find out soon when FB starts trading!
IPO fees will be $100 mln for the $10 bln IPO , just 1% or one third of what Zynga paid its merchant bankers barely a month ago and less than 20% of the average big time Valley IPO in the last few year we have had the ARPANET shouting about its revenue potential. The new COO Sheryl Sandberg is incharge of the IPO and a much more bankable face according to founder MArk Zuckerberg who is sharing face time with Sheryl on the networks, leaving it to Sheryl to get the IPO done