NEW YORK (dailynewyorknews) – presentation of Facebook IPO is imminent as expected, according to several new reports.
The Wall Street Journal started the hype on Friday, citing unnamed sources who said that Facebook may have an initial public offering as soon as Wednesday.
The New York Times and CNBC echoes of their own unnamed sources in articles published on Tuesday, saying that the deposit of the earth on Wednesday. Facebook seeks to raise up to $ 5 million in their offer, they said.
If this number is correct, Facebook is by far the largest IPO by an Internet-based global company, according to Dealogic. Google (GOOG, Fortune 500) $ 1.9 billion is the largest debut of the U. S. Internet IPO.
However, Facebook is still lagging behind U.S. IPO success as Visa (V, Fortune 500), which has raised more than $ 19 million in 2008, and General Motors (GM, Fortune 500), which grossed $ 18 million last year.
Facebook IPO Filing does not answer a question: What is the value of the company? To do this, Wall Street will have to wait Facebook began negotiations, which usually occurs several months after the companies file their first round of regulatory procedures.
Some experts have suggested that social networking could be worth between $ 75 million and U.S. $ 100 000 000 000 once it begins trading. No matter what the IPO market capitalization of Facebook is undeniably hot, says Max Wolff, chief economist at Capital Greencrest.
But there is much riding on the roles of Facebook as the creation of wealth. Social networking has become an entire ecosystem, support for application developers and independent platform game like Zynga (ZNGA).
Facebook’s presentation will have consequences for companies that depend, and the landscape of social media in general. So far, analysts are left to speculate on the sources of revenue for Facebook and profitability – and if it’s worth a $ 100 billion market.
Michael Pachter, an analyst with Wedbush Securities, said that the valuation range is rumored to be reasonable – although not include an accurate estimate of their own.
How Facebook make money – and much more could be done: The vast majority of advertising revenue from Facebook: A combination of search ads and display. And sales growth is incredibly robust.
Research firm eMarketer estimates that in September the Facebook advertising revenue would more than double in 2011 to $ 3.8 billion and increased another 52-5780000000% in 2012.
Facebook has grown market share advantage of Google and Yahoo. Last year, Facebook made a screen 16.3% of the call (ie, banners and other ads) market, eMarketer estimates – compared to Yahoo (YHOO, Fortune 500), 13 1% and Google (GOOG, Fortune 500) of 9.3%.
Martin Pyykkonen, an analyst with Wedge Partners, says Facebook is very attractive to advertisers, since approximately two thirds of its users enter the coveted 18-49 age demographic. He thinks that the selection of Facebook ads will be more efficient over time.
“The ‘Like’ button is a basic example of targeting,” wrote Pyykkonen in a note to clients Monday. “[It is] likely that advertisers can target their audiences better than Facebook goes beyond the integration of applications, games, movies, music.”
Other current revenue of Facebook is its system of payment for purchases within applications and games: Facebook Credits. Facebook reserves 30% of the revenue from these payments, and spent the remaining 70% of application developers.
Facebook credits and includes 10% of total company revenue, up from 5% in early 2010, Pyykkonen estimates.
These estimates will soon have the support – or refute – the number difficult to Facebook. Once the IPO filing did finally land, which will help answer questions about the global market for social media.
“People are extrapolating the results in an environment that is hungry for the missing details,” said Wolff. “It’s like every kid in the class of spreading rumors about the prettiest girl in school.”
Source: http://money.cnn.com/2012/01/31/technology/facebook_ipo_plans/index.htm?cnn=yes&hpt=ibu_c1
