Facebook sets value at $96 billion
Social media giant Facebook Inc. announced that it is looking to sell about 337.4 million shares of the company for $28 to $35 a share when the company goes public on May 18. That would make it the most valuable technology company at the time of initial public offering, setting its potential value at up to $96 billion.
Facebook’s value surpasses the previous highest set by a tech company – Google Inc.’s value of $23 billion in 2004. Facebook’s value would also make it as valuable as Amazon.com, according to The Wall Street Journal.
Facebook is now working hard to convince possible investors that the company is worth that much, since it is now competing heavily with Google and Twitter for digital advertising revenue. Facebook brought in $972 million in revenues between March 31, 2011, and March 31, 2012, according to Bloomberg.
“It’s really, really expensive,” said Bob Rice, managing partner at Tangent Capital Partners LLC, in an interview with Bloomberg. “It’s very hard for me to get my arms around a valuation of 80, 90 billion dollars for a company that did a couple of hundred million dollars of profit in the quarter.”
Facebook is expected to raise $13.6 billion when trading begins.
Trending News
