Facebook Files for IPO, Seeks $5 Billion

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ADOTAS – Well, it finally happened: Facebook filed with the SEC for an initial public offering — a move that most didn’t expect to come for months, before rumors started swirling over the past week. The company’s looking to raise $5 billion, and it hopes to trade under the ticker FB. That figure marks the biggest IPO for any internet company. Prior to the filing, Morgan Stanley had been announced as leading up the IPO once it happened, and later today, JPMorgan Chase, Goldman Sachs, Bank of America/Merrill Lynch, Barclays and Allen & Company were all announced as underwriters as well. Meanwhile, the New York Times reports sources near Facebook say the network ultimately is “aiming for a far greater offering that could value it as high as $100 billion.” You can read the SEC filing here.

Facebook reported revenues of over $3.71 billion in 2011, and it claims 845 million users. Today’s announcement is significant for reasons we probably don’t need to explain to you, and it also poses challenges for Facebook’s future that we probably don’t need to explain either. Incidentally, this Saturday, Feb. 4, marks the eighth anniversary of the network’s launch.

 

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