AAPL Stock: 117.81 ( -0.22 )

Printed from

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



Login Here

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


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented