World

Facebook to file for IPO

CNN announced on Tuesday that Mark Zuckerberg, the founder of Facebook, has finally agreed to file for IPO. The move will enable people to purchase shares from the social networking company on an open stock exchange. The value of the company will be estimated between $75 billion and $100 billion.

Analysts claim this is the largest initial public offering to be made in the U.S. history and Goldman Sachs will play a significant part in the deal. Facebook’s reps were not available for comments, but they will most likely communicate their press releases on Wednesday when the initial public offering will be enacted.

Banks are struggling to get their hands on the deal because the impending IPO will bring them earnings that amount to $10 billion. The competition between Wall Street companies is also very strong, especially between Morgan Stanley and Goldman Sachs.

The news brought additional earnings to the social network. According to LinkedIn Corp, the price per share was 5.9 percent higher at $76.64. Zynga Inc, on the other hand, reported that the initial price of $10.05 per share gained 5.6 percent after the company announced its intentions.

There is another implication that Zuckerberg’s decision might have upon the online space. According to analysts, the deal will definitely challenge Google’s supremacy on the Internet just like Apple once did with Microsoft. Facebook is already one of the most powerful companies in the world even though it was only founded seven years ago. It has more than 3,000 employees and the market value of $100 billion would make each employee worth $33 million. The social networking company will become even more powerful in the future once the IPO was filed.

Important changes will take place in the organization of the company, as well. It remains to be seen whether the departure of key employees and the arrival of new ones will affect the stability of the network.

Recent speculations claim that Twitter and other social networks may be tempted to follow Facebook’s example and become public, too. Social media specialists think these companies are too weak to go public; therefore, they will not file for IPO this year.

Previous ArticleNext Article
Ronald Silva is one of our newest publishers.He currently lives in Toronto (Canada) with his family.Ronald covers the music and sports sections of DailyGossip.org. Over the past few years, Ronald has participated in various journalistic projects including some of which he started when he worked for a local newspaper in Toronto. Contact him at Ronald.Silva@dailygossip.org.

Leave a Reply

Your email address will not be published. Required fields are marked *