Six Things to Know about the 'Facebook IPO' Tour

By siliconindia   |   Friday, 03 February 2012, 00:43 IST
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Bangalore: Facebook is going public and is ready to define the latest Web investing boom. This social-networking site which was started just eight years back redefined the way millions of people worldwide interact and share information on the Internet.  Presently Facebook has 845 million users, including 483 million active daily users. The company is valuing themselves worth $100 million and is all set to become the next big tech IPO after Google.

Industry sources expect the stock offering will set Facebook's overall value at $75 billion to $100 billion. The papers filed Wednesday do not specify how many shares will be sold, their offering price, or the date they will be offered; the company is expected to release more details in coming weeks.

"Facebook was not originally created to be a company. It was built to accomplish a social mission -- to make the world more open and connected," Zuckerberg wrote in the letter, adding, "Simply put: we don't build services to make money; we make money to build better services."

Market, investors and rivals waits to watch what makes Mark Zuckerberg's social network go public, so let’s know about some questions which are popping from all sides for this eight year old tech giant.

Is Facebook Worth $75 billion-$100 billion?

Facebook has 850 million users, has already overtaken Yahoo to become number one in online display advertising revenues and is estimated to earn $7bn by 2013, taking 16.3% of the market, says eMarketer, a research firm. But if we compare it with Disney (valued at $70bn) which has annual revenue of over $40bn there comes some mismatch. But this is the most hyped IPO in years and setting a value less than $75 will be a setback for Wall Street.



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