After all the talk and rumours it seems as if we have finally arrived at the moment of reckoning for Facebook. Wednesday 1st February is the day when the social networking giant will put in the paperwork on its initial public offering. It is expected to be valued at $5 billion, which equates to £3 billion.
The quiver of excitement surrounding the news is understandable. This is easily the largest price ever mentioned in conjunction with an IPO for a company like this. Facebook creator Mark Zuckerberg looks to become a billionaire – not a millionaire but a billionaire – as a result of the IPO. Several other employees at the company are also thought to benefit hugely financially as a consequence of the move.
Initial suggestions were that the IPO could be worth as much as $10 billion. However, even though the amount is much less than that, it is still far more than many people can imagine. When talking in terms of the actual overall wealth and value of the company, that figure will pale into insignificance.
Although all eyes are on the figures, the real question is whether Facebook can make money from all the data it has collected. This is where privacy concerns and the viability of the social network come in. It remains to be seen how successful Facebook’s IPO is, and how successful future shares are after this. There is no doubt all eyes are definitely on the social network at the moment.