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Facebook Reportedly Filing $5 Billion IPO Today
hypnosec writes "Today is the day when Facebook may be submitting all required paperwork to regulators for its $5 billion initial public offering. According to the source close to the deal, Facebook has selected Morgan Stanley along with four others — Bank of America Merrill Lynch, Goldman Sachs, JP Morgan and Barclay's Capital to handle this IPO. Morgan Stanley will be taking "lead left" role in this supposedly biggest IPO from Silicon Valley. According to International Financing Review, the preliminary target of $5 billion will be increased by many folds in coming few months as a response to the demands of investors. Sources close to this matter disclosed that this might turn out to be defining moment for current web investments. The deal might rise to $10 billion which eventually will make Facebook a social networking empire valued between $75 billion to $100 billion. In fact, $75 billion is definitely an undervaluation compared to previous expectations."
If I recall, Google was almost $100 a share when it IPO'ed and I thought that was way too much. So I did not buy, because I couldn't figure out how they were going to sustain that.
Well, I was quite wrong because Google went up to $200 then $300, then $400 and has been at something around $500 a share for the last 6 or 7 years. Crazy.
So, I don't know what to think about Facecrook. On one hand, I find the company utterly despicable. On the other hand, companies that are utterly despicable tend to go up in value -- a lot.
They are going to be the top dog in social media for at least the next 5 years, which is enough time to buy some shares, watch them go up in value, and then sell in about 3 or 4 years with no regrets if it goes up further.
If telephones are outlawed, then only outlaws will have telephones.
http://www.zerohedge.com/news/facebook-ipo-because-time-its-different