Newsletters
Business News for Technology Decision-Makers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Business Briefing Mobile Industry News Small Business Tech Trends More Topics...
Barium Ferrite (BaFe):
Higher Capacity, Superior
Performance, Longer Archival Life

www.thefutureoftape.com
Business Briefing
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Facebook
Facebook's Spending Spree May Have Delayed IPO

By Jennifer LeClaire
April 25, 2012 1:54PM

Bookmark and Share
Many industry watchers expect Facebook's valuation to range between $75 billion and $100 billion. Facebook wants to raise up to $10 billion, according to The Wall Street Journal. Facebook posted a $1 billion profit in 2011. Facebook's IPO may be delayed a month due to the need for more financial disclosures to the SEC.
 



Facebook appears ready to delay its initial public offering. CNBC first reported that the social media giant was pondering moving the big event to June.

Facebook representatives could not immediately be reached for comment about the status of its IPO. The company was expected to begin its IPO road show in two weeks in anticipation of a May public offering, according to news reports.

Facebook CEO Mark Zuckerberg has been busy spending cash, though, and that may be spurring delays. Facebook just snapped up Instagram, a popular photo app. And the company also spent $550 million on patents from Microsoft in a move to beef up its IP protection in the lawsuits with Yahoo and any other attacks patent trolls may launch against it once it collects what could be a $100 billion IPO.

Social Media Ups and Downs

In November, Groupon posted the largest initial public offering since Google by raising $700 million. Then, in December, Zynga one-upped the social couponing site with an IPO of its own by raising $1 billion in its IPO. Zynga then boasted the biggest IPO since Google raised $1.9 billion in 2004. Facebook could dwarf them all when it goes public.

Many industry watchers expect Facebook's valuation to range between $75 billion and $100 billion. Facebook wants to raise up to $10 billion, according to The Wall Street Journal. Facebook posted a $1 billion profit in 2011 on $3.71 billion in revenues.

Beyond the recent acquisitions, Facebook is also under heavy government scrutiny. Every two years for the next 20 years, Facebook is required to have independent, third-party audits certifying that it has a privacy program in place that meets or exceeds the requirements of a Federal Trade Commission order, and to ensure that the privacy of consumers' information is protected.

Facebook's Rare Moves

We caught up with Jake Wengroff, global director of social media strategy and research for Frost & Sullivan, to discuss the whys and what nows of Facebook's apparent decision to push off its IPO.

"The IPO will be delayed by one extra month, at most -- but the show will go on," Wengroff said. "Decisions to buy Instagram for $1 billion over the course of a weekend, in addition to a $550 million patent portfolio from Microsoft, have served to delay the IPO -- but have also created the need for additional financial disclosures" with the Securities and Exchange Commission.

Few companies in an IPO quiet period carry out such large-scale transactions, he said, and this has served as a curious point in the process of Facebook becoming a public company.

Still, Wengroff remains bullish on Facebook's overall IPO timing.

"It may appear that the company has waited on the sidelines as other social media companies have transitioned to becoming public companies," Wengroff said, "but Facebook had to make calculated moves to ensure that nothing could stand in the way of its filing."
 

Tell Us What You Think
Comment:

Name:



Neustar, Inc. (NYSE: NSR) is a trusted, neutral provider of real-time information and analysis to the Internet, telecommunications, information services, financial services, retail, media and advertising sectors. Neustar applies its advanced, secure technologies in location, identification, and evaluation to help its customers promote and protect their businesses. More information is available at www.neustar.biz.


 Business Briefing
1.   Otherworldly Ambitions of Elon Musk
2.   Google, Rockstar Suit Stays in Calif.
3.   Google Earnings, Sales Disappoint
4.   Profit and Revenue Slip for IBM
5.   Zynga Launches Mobile FarmVille


advertisement
Otherworldly Ambitions of Elon Musk
Has sights set on celestial prize: Mars.
Average Rating:
Is Zuckerberg Nuts To Buy Oculus VR?
$2 billion deal for unproven company.
Average Rating:
Google, Rockstar Suit Stays in Calif.
Judge not fooled by Apple's tricks.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Heartbleed Could Cost Millions, Could Have Been Prevented
Early estimates of Heartbleed’s cost to enterprises are running in the millions. The reason: revoking all the SSL certificates the bug exposed will come at a very hefty price. Some say it all could have been avoided.
 
Michaels Says Nearly 3M Credit, Debit Cards Breached
Arts and crafts retail giant Michaels Stores has confirmed that a data breach at its POS terminals from May 2013 to Jan. 2014 may have exposed nearly 3 million customer credit and debit cards.
 
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
The innovative headpiece may find its niche in markets where hands-free access to data can be a big advantage. Glass experiments for doctors are already under way, with some promising results.
 

Mobile Technology Spotlight
Review: Siri-Like Cortana Fills Windows Phone Gap
With the new Cortana virtual assistant, Windows catches up with Apple's iOS and Google's Android in a major way, taking some of the best parts of Apple's and Google's virtual assistants, with new tools too.
 
With Galaxy S5, Samsung Proves Less Can Be More
Samsung has produced the most formidable rival yet to the iPhone 5s: the Galaxy S5. The device is the fifth edition of the company's successful line of Galaxy S smartphones, and shows less can be more.
 
Facebook Rolls Out Potentially Intrusive Location-Sharing
Looking for friends? Facebook users in the U.S. will soon be able to see which of their friends are nearby, using a smartphone's GPS. Could be a cool feature in some cases, or way too much information.
 

Navigation
NewsFactor Business
Home/Top News | Business Briefing | Mobile Industry News | Small Business | Tech Trends | Business Intelligence | Sales & Marketing | Innovation
E-Commerce | CIO Issues | Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.