Rumor: Facebook Goes Public On May 17, Is Worth Over $75 Billion

Posted on Apr 19 2012 - 12:12pm by Editorial Staff

Facebook much awaited giant Initial Public Offering has been expected to hit on May 17. The latest rumor comes from multiple sources close to the company cited by TechCrunch. May 17 will only be the big day if the U.S. Securities and Exchange Commission (SEC) give the green light for Facebook’s mounting paperwork.

Other rumor mounting up is that Facebook valuation is over $75 billion. The social giant recently bought up $1 billion worth photo sharing service Instagram. Here’s a quote from The New York Times:

In early April, Facebook bought the photo-sharing service for $1 billion, agreeing to pay roughly 30 percent in cash and 70 percent in stock, according to people briefed on the negotiations. At that level, Facebook is pegging its own stock price at roughly $30 a share. Based on those numbers, the giant social network is valued at north of $75 billion.

But Facebook could actually be worth more.

During the negotiations with Instagram, the parties framed the deal around a logical assumption: Facebook could soon trade publicly at a much higher market value. As part of the talks, the companies discussed a potential value of about $104 billion for Facebook, the people briefed on the negotiations said. Instagram’s co-founder Kevin Systrom first broached the number, one of the people said.

(Image Source: Facebook, Featured Image)

About the Author
Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.