Facebook plans to raise £6.5bn in IPO this month

Facebook is attempting to raise $10.6bn (£6.5bn), as it prepares the final stages of what is being touted as the largest Silicon Valley IPO in history.

The social networking giant, has said it will be offering shares at a price range of between $28 to $35, which according to several financial news sources would value the company at between $77 billion to $96 billion.

This is lower than the $100bn valuation bandied about when Facebook first announced it was to go public in February.

This valuation would dwarf Google’s valuation at IPO, which was $23bn. If it were to achieve the higher end of te valuation it would be almost as large as e-commerce giant Amazon.

According to several reports Facebook shares could start trading as early as 18 May.

Amid all the hype around the eight-year old company’s stock market debut, it posted its  first quarterly revenue fall in two years, dropping 6.5% year on year to $1.06bn (£657m) for the three months to 31 March.

The network is heavily dependent on advertising revenues, however payments through its Facebook Credits system is an area which could provide additional revenue streams for the business in the future.

According to several digital industry experts, the challenges facing Facebook post-IPO will be the knife edge of generating more revenue from its users while keeping user experience at the forefront.

Last week global marketing chief Carolyn Everson urged marketers to "take a bet on us", as the business becomes ever more commercially minded

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Latest

Battersea's digital dog 'follows' shoppers in outdoor campaign

Battersea's digital dog 'follows' shoppers in outdoor campaign

Battersea Dogs and Cats Home have today launched a new form of digital outdoor advertising in which a dog on a billboard appears to follow shoppers as they walk past.

Share
Hooray for Hollywood: Film stars make welcome strides in TV ads

Hooray for Hollywood: Film stars make welcome strides in TV ads

Kevin Bacon, Al Pacino and Sylvester Stallone all reconfirm the trend of a vibrant TV ad market on top of its game, says ITV's deputy managing director, commercial, Simon Daglish.

Share
What influence have newsbrands had in the 2015 General Election?

What influence have newsbrands had in the 2015 General Election?

With the election just a week away, the second in Newsworks' series of election trackers looks at the influence of newsbrands - can they really impact the election outcome when there are so many different sources of information out there? Denise Turner reports.

Share

Get news by email