Facebook will file paperwork for its initial public offering today to be set at $5 billion. Morgan Stanley will be the lead underwriter, with Goldman Sachs, Bank of America Merrill Lynch, Barclays Capital, and JP Morgan completing the team of underwriters.
The estimated valuation of Facebook will be in the ball park of $75-100 billion, which would make the IPO one of the largest in United States history.
When and if Facebook would go public has been highly scrutinized for years and recently it has been the most anticipated IPO of the social communities. The hope for investors was that the recent string of social media IPO’s would prompt Facebook to go public and then help stabilize the stock market.
There has been one surprising aspect to the pending public offering of Facebook. Several of the previous social media companies that made IPO’s in 2011 have seen some buoying of their own companies on the stock market.
One thing is for sure, people have been waiting to get their hands on Facebook stock, and it will be interesting to see what the impact across the stock marketing will be. The flip side of the coin is, “What will happen to Facebook once it’s public?”, and that will surely remain the most unknown part of the whole process. Will Facebook itself change? Will investor influence dictate the experience of the user today?
What do you think will happen with Facebook? Will Facebook steady the stock market? Leave us a comment on our Facebook wall and let us know what you think. As always, please feel free to share this with friends.
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