Facebook goes Public to raise $5 Billion
Facebook has announced it is finally going public seeking to raise $5 billion in initial funding. That’s in line with some of the largest public floats in history and, considering Facebook’s revenue of $3.7 billion last year, should place the share price at about $30 per share. So is it worth buying in? Will we too (just like Mark Zuckerburg has) be able to cash in just 8 years later with more than a few million in cash? Mike was on SBS National radio this morning discussing the float, it’s implications for Australian advertisers and users. “It’s likely to be all positive. Global revenue raised by the float is likely to be spent on developing the platforms features and for pushing further into Asia. They may even spend it in an attempt to get the platform set-up in China, there’s exponential growth there….and with advertising currently accounting for 84 percent of the company’s $3.7 billion in revenue and many advertisers continuing to find advertising on Facebook less expensive and resource-intensive than traditional kinds of advertising, that revenue is sure to continue to grow. Advertising products that target users based on their API will become better, Facebook will become even more useful for small, medium and large businesses who want reach combined with engagement – basically for any brand looking to create longer and more engaging relationships with their customers, Facebook advertising is working better than traditional broadcast advertising.” Read more about Facebook’s $5 Billion IPO here.