Printed from http://www.electronista.com

Facebook estimates its value at up to $96 billion in IPO

updated 06:25 pm EDT, Thu May 3, 2012

IPO valuation at least three times higher than Google

Facebook has finally set an official estimate for its initial public offering, which will offer individual shares for between $28 and $35. The pricing is said to equate to an estimated valuation ranging between $77 billion and $96 billion, slightly lower than the highest analyst estimates but far higher than any other Internet company.

The valuation contrasts to Google's IPO, which arrived in 2004 with a valuation of $24 billion. The Facebook valuation represents 24 times annual revenue, while Google's valuation at the time represented five times revenue, according to a Bloomberg report.

Approximately 337 million shares will be up for grabs, fetching $11.8 billion in the public sale, though chief executive Mark Zuckerberg will retail more than 500 million shares and a majority of the voting rights. Altogether, the company will have approximately 2.14 billion Class A and B common shares.

The IPO is being underwritten by Morgan Stanley and Goldman Sachs, among other firms. The company is expected to promote the offering early next week.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Cat B100

Cat is primarily known for its heavy-duty machinery used in the construction industry and farming, among other areas. What may not be ...

Linksys EA6900 AC Router

As 802.11ac networking begins to makes its way into more and more devices, you may find yourself considering an upgrade for your home ...

D-Link DIR-510L 802.11AC travel router

Having Internet access in hotels and other similar locations used to be a miasma of connectivity issues. If Wi-Fi was available, it wa ...

Sponsor

toggle

Most Commented

 
toggle

Popular News