Facebook Is Going Public At Valuation Of $100 Billion
CNBC reported that Facebook is preparing for an IPO with a valuation of $100 billion. The company is going public by the first quarter of 2012.
The reason of Facebook preparing for IPO is probably “the 500 rule” in a section of 1943 Securities and Exchange Act. According to the rule, private company must start releasing quarterly financial information to the Securities and Exchange Commission when it has more than 500 investors.
Another reason said by others is Facebook wants to increase employee compensation. Their employees can monetize the share when they quit Facebook.
Facebook spokesman declined to comment on this matter but chief operating officer, Sheryl Sandberg hinted that it would be ” the next thing that happens.”