toggle

AAPL Stock: 112.74 ( -0.18 )

Printed from http://www.macnn.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 MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

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

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...

MSI Geforce GTX 970 100ME

When Nvidia announced a new line of video cards in September 2014, many people thought things would continue to be business as usual i ...

Wren V5US Wireless Sound System

If you're a music fanatic, chances are you are, by extension, a bit fanatical about what you listen to your music on. If you're like ...

toggle

Most Commented