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. Click for more information, or
Home Business Briefing Mobile Industry News Small Business Business Intelligence More Topics...
Digital Life
Tame your scariest paperwork. Find Out How
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:





 Digital Life
1.   Android 'Fake ID' Puts Millions at Risk
2.   FTC Wants Fix for Mobile Cramming
3.   Facebook To Force Use of Messenger
4.   OkCupid Experiments with Daters
5.   BlackBerry Acquires Secusmart


advertisement
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
Radical.FM's Freemium Biz Model
Online radio startup asks for donations.
Average Rating:
Facebook Social Experiment Irks Us
Secretive test was legal, but ethical?
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 

Enterprise Hardware Spotlight
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 

Mobile Technology Spotlight
Android 'Fake ID' Puts Millions of Users at Risk
Having this fake ID is nothing to brag about, even if you are a minor. The “Fake ID” Android flaw drops malware into smartphone apps. It can steal credit card data and even take over your device.
 
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

Navigation
NewsFactor Business
Home/Top News | Business Briefing | Mobile Industry News | Small Business | Business Intelligence | Innovation | E-Commerce | 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

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.