Facebook, the social internet site is preparing to file for an initial public offering as early as October or November that could value the popular social networking site at more than $100 billion, financial news channel CNBC reported on Monday. The leading chase to manage the lucrative offering is Goldman Sachs which will come in the first quarter of 2012.
Up to date Facebook has crossed 700 million users worldwide and it is standing in the highest position of Internet social network and one of the most hotly-anticipated initial public offerings on Wall Street.
According to the statement given by Chief operating officer of Facebook in last month he told that an IPO was “inevitable,” declined to comment on the latest report about its timing for an offering. Facebook’s future plans anticipation comes at a time of heightened investor appetite for shares of fast-growing social networking companies.
Valuing the company to $7 billion Professional networking site LinkedIn Corp launched its own IPO last month. In the starting of this month daily deals site Groupon Inc filed to raise up to $750 million in an IPO, fueling speculation that Internet valuations have become too rich.
Facebook was founded on 2004 by Mark Zuckerberg who is now just 27 years old and a millionaire. Facebook threatens Internet companies like Google Inc and Yahoo Inc as it becomes a popular online destination for Web surfers and an important marketing channel for advertisers.
Earlier in the starting of this year Facebook was value at $50 billion when Goldman Sachs invested in the company. Current transactions of Facebook shares on the secondary market have valued the company between $78 billion and $81 billion, according to information on the website of Sharespost, an exchange for trading shares in private companies.
Current estimation is that Facebook generate roughly $4 billion in advertising revenue in 2011, up from $1.86 billion a year earlier, according to market research firm eMarketer.