Facebook rumoured to file for Initial Public Offering on February 02 or 03, 2012 – Part 2

Goldman Sachs is trying to pull some strings on the basis of its former relation with Facebook. The company led the private offering of Facebook but that relation frayed in the past few months. But the investment bank is trying to sway the top management at Facebook for a preference over other competitors.

The reason why Morgan Stanley won the competition, rumoured of course, is the dedicated section at the firm for Internet-based businesses. The company led all the IPOs of online businesses around the world. Although Goldman was also among the most prominent, it could not beat Morgan Stanley in that particular area. However, Goldman still bears a chance in the competition being the lead underwriter in all IPOs worldwide in 2011.

That being said, there is competition springing out at Wall Street. New York Stock Exchange and Nasdaq have locked horns for the registration of FB in their rosters. This IPO, having importance to the Street, has the potential of luring investors to the stock market, in their viewpoint at least. Therefore, both exchanges are battling to get the rights to FB on their respective screens.

This might be one huge stride from Facebook to increase its valuation in the neighbourhood of $80 to $100 Billion but the California-based firm still struggles to find a concrete source of revenues other than advertisements on the website, which has attracted cash in the tune of $4 Billion in 2011. This is the very question in everybody’s mind at the moment and it might be one of the reasons why Facebook reserved itself to $5 Billion worth of stock in the IPO.

However, analysts will be poking into the pelt of the social network in the next two or three months until the final valuation surfaces the media. Recently, analysts have valued Facebook with the bracket of $50 to $75 Billion.

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Posted by Usman Khalid on Feb 1 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.