Facebook IPO: Targeting $96 Billion Company Valuation

Facebook IPO: Targeting $96 Billion Company Valuation

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Facebook revealed in a regulatory filing some of the details outlining their upcoming IPO. The deal could raise up to $13.6 billion for the company and its investors, according to The Wall Street Journal. The share price range, $28-$35, could value the company between $77 billion to $96 billion, putting the social network billions higher than Google Inc. (GOOG)’s $23 billion valuation in 2004.

CEO Mark Zuckerberg’s ownership of Facebook will be valued as high as $18.7 billion, while also retaining approximately 57.3% of the voting power. The valuations could climb higher if the investment bankers brokering the deal, Morgan Stanley (MS), JPMorgan (JPM), and Goldman Sachs (GS) raise demands.

The IPO could be launched and available to trade about two weeks from now under the symbol “FB”. The deal will likely greatly overshadow IPOs of other Internet companies from last year like LinkedIn Corp (LNKD) and Zynga Inc. (ZNGA). The only other IPOs that have raised more money at issuance were Visa Inc. (V) at $19.7 billion in 2008 and General Motors Co. (GM) at $18.1 billion in 2010.

Business Section: Investing Ideas

If the IPO launches at the lower at of its range, it could potentially be considered a discount. Use Kapitall tools to analyze some of the stocks mentioned above. Do you think Facebook is worth the upper limit of their projected range? And how much do you think the investment bankers will make from the deal?

Interactive Chart: Press Play to compare changes in market cap for MS, JPM, GS, LNKD, ZNGA, and GOOG:

 

 

Interactive Chart: Use the Turbo Chart to compare the stock performance of MS andZNGA against the performance of the S&P 500 Index (SPX):

 

 

 

 Kapitall Presents: The Facebook IPO And You

(Written by Danny Guttridge)

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One Response to “Facebook IPO: Targeting $96 Billion Company Valuation”

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