Facebook Files for IPO, Seeking $5 Billion (BREAKING)
Facebook has filed for its long-awaited Initial Public Offering (IPO). The Social networking giant is seeking $5 billion in public investment to keep its astonishing growth on track. Just last year, Facebook’s revenues nearly doubled, from 1.9 billion to 3.7, according to its released financial statements.
On Its Eighth Birthday, Facebook Files to Raise $5 Billion in Massive IPO dthin.gs/y3Ir8U
— Kara Swisher (@karaswisher) February 1, 2012
Facebook’s S-1, the legal document containing basic financial information, boasts that the social networking king has 845 actively monthly users, more than half of them active daily (483).
Facebook S-1: 845M monthly active users, 483M daily active users. Story coming soon at news.cnet.com
— CNET News (@CNETNews) February 1, 2012
While Facebook’s inner circle is reasonable elated (Randi Zuckerberg posted, “YAY!, What an amazing journey!” on her wall), the success of Facebook’s IPO has important implications for the entire tech sector. Groupon launched its stock offering with similar fanfare, but the stock quickly dipped to below its original levels, leaving some to speculate that the Internet was headed for another 90’s economic bust.
What do you think? Is this a smart move by Facebook? Is it the beginning of another bubble?