Facebook values company at $85bn to $95bn

Friday, 04 May 2012 10:21

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Facebook has priced its shares at between $28 and $35 for its initial public offering (IPO) on the stock market, putting a value on the firm of $85 billion to $95 billion.

The IPO will be the biggest ever for an internet company, outstripping Google’s valuation in 2004 of $23 billion. Today, Google is worth around $200 billion.

Facebook is due to begin promotion of its shares listing on the Nasdaq from next week, with trading set to start on May 18.

More than 10 per cent of the world’s largest social network – boasting in excess of 900 million users – is being sold and a huge response is expected.

This means the IPO may raise up to $13.6 billion, as share prices could climb higher in the build-up over the next two weeks.

The company made a profit of $1 billion in 2011, but last week reported its first fall in quarterly revenue for two years.

However, bosses said they are looking to invest heavily in mobile technology.

Last month it announced the purchase of mobile photo sharing app Instagram for $1 billion.

After the IPO, Facebook’s founder and chief executive Mark Zuckerberg will stay in control of the company, with more than 57 per cent of the voting power.

 

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