Facebook announces $5B flotation

Wednesday, 01 Feb 2012, 23:18

 

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The world's largest social networking site, Facebook, has announced plans for a stock market flotation.

Facebook said it would seek to raise $5bn, about half the amount many analysts expected.

It is still expected to be the biggest public sale of shares by an internet company.

The rise of Facebook, begun by Harvard University students, has been meteoric, attracting 800 million users in just eight years.

Facebook filed its intention to float with the Securities and Exchange Commission after the US stock markets closed.

The filing revealed that Facebook had revenues of $3.7bn in 2011, and that founder Mark Zuckerberg owns 28.4% of the company.

The story of the company was made the subject of a 2010 Hollywood film, The Social Network, and the firm has made the verb "to friend" a part of everyday language.

Reports have suggested the company could be worth $100bn, roughly the same as US giants Amazon and McDonald's.

Facebook currently makes most of its money from online advertising.

Source: BBC

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