Facebook IPO may be delayed amid a string of other distractions
Linkedin

Facebook IPO may be delayed amid a string of other distractions

Palo Alto : CA : USA | Apr 25, 2012 at 1:49 AM PDT
XX XX
Views: Pending
 

Facebook’s IPO expected in May might be delayed until June amid a number of acquisitions the technology giant is undertaking. Following the news, the social media index for Facebook has dipped considerably.

According to a report by MSNBC, before the news came out, Global X Social Media Index SOCL, was trading at $15.16, but after the news had come out, it went down by 9 basis points. Since SOCL first debuted in November last year, its assets under management have gradually moved up prior to the Facebook IPO. The average daily volume numbers along with the SOCL surged as soon as the markets received the news of Facebook IPO earlier this year. The latest announcement of the delay could cause a problem for the SOCL, since EFT was expected to be the first to welcome Facebook.

Earlier this year, Global X CEO Bruno Del Ama predicted Facebook to become a SOCL constituent within its first five trading days. "At a $75 billion to $100 billion valuation with a free float of 5% to 10%, Facebook would immediately be among the largest holdings in the ETF," Del Ama said in an interview in February, according to a report on Market Watch.

Since its filing with the Securities and Exchange Commission in February, Facebook has been seeking to raise as much as $10 billion at a $100 billion valuation when it goes public in June this year - which will be the biggest ever internet IPO, even surpassing that of Google’s. Its shares will be listed with the NASDAQ under the symbol of FB.

Facebook founder Mark Zuckerberg is, at the moment, busy with making acquisitions and running the business - which has temporarily shifted his focus from the sale of shares and other IPO preparations. Facebook is therefore considering “Plan A, B, C and D” for its IPO, tells a source.

Those who are disappointed by the news should understand that it's good that Zuckerberg is focusing more on running the business successfully rather than investors or the stock prices for that matter, since that is what will benefit the future investors in the long run.

However, its $1 billion Instagram acquisition along with a $550 million patent portfolio from Microsoft call for further disclosure with the SEC.

1 of 14
Next
File photo of a sketch of founder and CEO Mark Zuckerberg is seen on a wall at the new headquarters of Facebook in Menlo Park
File photo of a sketch of founder and CEO Mark Zuckerberg is seen on a wall at the new headquarters of Facebook in Menlo Park
Wendy Zachary is based in Texas, Texas, United States of America, and is a Reporter on Allvoices.
Report Credibility
 
  • Clear
  • Share:
  • Share
  • Clear
  • Clear
  • Clear
  • Clear
 
 
 
Advertisement
 

News Stories

 
  • Facebook IPO may be delayed due to Instagram buy, other distractions

      Venture Beat
    Rumors have been circulating that Facebook management had targeted the IPO for May, with a road show to prepare for the sale starting May 7 and trading to begin May 14. However, now might not be the best time to make the offering. Because of it's $1...
  • Facebook expected to hold off on IPO

      The Christian Science Monitor
    O Analysts envisioned that Facebook would start trading on Nasdaq by mid-May. Now it looks like Mark Zuckerberg has other business to deal with, which could prompt a delay in the much-anticipated initial public offering.
  • Facebook 'to delay flotation until June'

      Independent
    June, after a string of acquisitions reportedly diverted the attention of top executives...It follows a spending spree by Facebook chief executive Mark Zuckerberg in the last two weeks. First he agreed to pay $1bn for the mobile photo-sharing app...
  • Facebook to pay over Sh46bn to Microsoft

      Daily Nation
    Tuesday Facebook struck a $550 million deal on Tuesday to get its hands on hundreds of AOL patents from Microsoft as the social network hardened its defences before it goes public on the Nasdaq. Facebook will pick up around 650 of the 925 patents...
  • Facebook deals may add week to IPO timing: source

      International Business Times
    A recent acquisition spurt by Facebook Inc may add about a week to the social network's journey to public markets, a source familiar with the situation said on Tuesday. Facebook recently agreed to buy photo-sharing start-up Instagram for about $1...
  • The Facebook conundrum

      Sydney Morning Herald
    Story continues below That's rather a lot for a social-media company...Facebook's purchase of Instagram for $1 billion last month suggested a value of $25 to $30 per user...The need to deliver The generosity of the $100-per-user valuation really...

Blogs

 >

Images

 >
 

More From Allvoices

Related People

Report Your News Got a similar story?
Add it to the network!

Or add related content to this report



Use of this site is governed by our Terms of Use Agreement and Privacy Policy.

© Allvoices, Inc. 2008-2014. All rights reserved. Powered by PulsePoint.