Facebook IPO expected early 2012 as they deny losing users

Jamie Hinks
June 14, 2011
4 Comments

Facebook IPOFacebook is reportedly preparing for an Initial Public Offering (IPO) in early 2012 that could be worth as much as $100billion. CNBC believes that the behemoth of the social network industry will embark on the IPO in the first quarter of next year and it comes off the back of figures showing the site is in fact slowling slightly. Goldman Sachs are expected to underwrite the IPO after their investment of $450million earlier in the year and the site could even top the $100billion valuation that it’s been tagged with. As we’ve seen in the online gaming industry, IPOs can go very wrong and you don’t have to delve particularly deep to find examples. This even moved payment provider Skrill to postpone their plans. So watch out Mark!

The social network has also moved to quash the aforementioned rumors that there are hemorrhaging users. The report, published by Inside Facebook, suggested that they’d lost up to six million users in May in the US alone. In statement, Facebook stated, “From time to time, we see stories about Facebook losing users in some regions. Some of these reports use data extracted from our advertising tool, which provides broad estimates on the reach of Facebook ads and isn’t designed to be a source for tracking the overall growth of Facebook.”

They also added that, “We are very pleased with our growth and with the way people are engaged with Facebook. More than 50% of our active users log on to Facebook in any given day.”

It certainly makes for a whole raft of material that the writers could use if they’re struggling with The Social Network II. They’re probably praying that there’s some drama surrounding the IPO too. That would make for some trilogy!

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