Facebook May File for IPO Wednesday Feb 1, 2012: Why Do It Now?
WSJ reports IPO filing could occur next week.
Facebook may file for its initial public offering next week. The Wall Street Journal reported today that Facebook is likely to file for its IPO on Wednesday. The announcement was one of the top tech topics for social media today and the IPO is long awaited by Wall Street retail investors who are expected to jump at the chance to get shares of the most popular social networking company on the planet. Facebook has 800 million users and is much bigger than other social media websites such as Twitter 100 million and Google+, which is estimated at about 62 million but growing fast.
Why is Facebook doing this now?
Facebook could be trying to take advantage of the momentum it has before it’s too late and in the past few weeks some tech, social media IPO’s haven’t had stellar performances such as Angie’s List and Zynga. Facebook may also be launching its IPO to take advantage of the perceived weakness in Google short-term because the company’s most recent earnings for Q42011 disappointed investors. Timing is important for any new firm coming to market and Facebook is competing against Google+ for pay per click/display ad revenue so it’s important to get the word out now while the company is still hot. Facebook is slated to have one of the biggest initial public offering in history and could be worth more than $100 billion after the shares hit the market.