"The Facebook IPO has the potential to change the internet sector, creating what will be one of the most valuable internet and technology companies."
Ironically, Facebook does not need capital and is going public mainly to comply with regulations. Without a tangible plan to invest the bulk of the issue proceeds, the company's future profitability might suffer.
Analysts say that Facebook is aiming for a far greater offering than the $5 billion planned initially. Its IPO could well be the largest by any company. Its valuation could be somewhere in the region of $75 to $100 billion. It suggests that stock markets in the U.S., though weighed down by macroeconomic concerns, are still willing to reward exceptional players. The Hindu : Opinion / Editorial : Like/Comment/Shares:
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