Facebook IPO Coming In 2012, Could Be Worth $100 Billion

Everyone knows that Facebook is going public. When was the only question. Now it appears that it will be early next year.

Facebook apparently is being compelled go public by an obscure SEC rule that requires companies with 500 or more shareholders to start disclosing financial information even if they haven’t gone public. Thus Facebook wants to “get out ahead” of this requirement and have its IPO before it’s forced to start reporting earnings publicly.

Giving Employees a Chance to Cash Out

CNBC speculates that Facebook also wants to enable restless employees to “gain some liquidity,” given Facebook’s restriction on employee option sales right now (to avoid the “500 rule”). Accordingly, there’s an apparent “perverse incentive” to leave the company to realize the value of employee options in the private market.

But after key employees are made super-rich (or 2X super-rich if they were part of Google’s IPO) Facebook may also see some people exit to become investors or to self-fund new startups. We’ll probably see a Facebook “S-1″ form later this year that will offer the first real information about revenues, estimated to be approaching $4 billion this year.

My prediction is that Mark Zuckerberg (though very Larry Page-like) will probably not like or want the duties of public company CEO and ultimately give that role to Sheryl Sandberg. Alternatively he could delegate many of the public and investor-facing duties to Sandberg, who’s more diplomatic and polished than Zuckerberg.

Demand for Growth, Revenues

The pent up demand for Facebook’s IPO is so large that the company could be valued at well over $100 million when shares start trading. But there will be pressure to justify the valuation with revenues and not just revenue potential. That means a bucket of new monetization scenarios or turning up the volume on existing ones.

As Facebook approaches 700 million users globally (and seems unstoppable) one worrying statistic has emerged.

It was reported earlier that Facebook has seen some attrition and erosion in its most mature markets. However it’s way to early to call this a trend. If it continues months from now Facebook might have a problem on its hands. However metrics like daily frequency and page views are as important or more important than overall uniques.

Related Topics: Channel: Social | Facebook


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

Connect with the author via: Email | Twitter | Google+ | LinkedIn


Get all the top search stories emailed daily!  


Other ways to share:

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. Comments may also be removed if they are posted from anonymous accounts. You can read more about our comments policy here.
  • http://www.visionefx.net Rick Vidallon

    Once this happens Facebook will have to beef up income streams a.k.a. Ad Revenue. Look for interior pages of Facebook to look more like Yahoo’s homepage.

  • http://www.davidmalmborg.com DavidMalmborg

    Is it just me, or is there so much hype in the Facebook IPO, that the valuation could be bloated?

  • http://www.cheechunfoo.com Chee Chun Foo

    Just want to point out, it should be $100 billion, not $100 million right? Refer to sentence below:

    “The pent up demand for Facebook’s IPO is so large that the company could be valued at well over $100 million when shares start trading.”


Get Our News, Everywhere!

Daily Email:

Follow Search Engine Land on Twitter @sengineland Like Search Engine Land on Facebook Follow Search Engine Land on Google+ Get the Search Engine Land Feed Connect with Search Engine Land on LinkedIn Check out our Tumblr! See us on Pinterest


Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States


Australia & China

Learn more about: SMX | MarTech

Free Daily Search News Recap!

SearchCap is a once-per-day newsletter update - sign up below and get the news delivered to you!



Search Engine Land Periodic Table of SEO Success Factors

Get Your Copy
Read The Full SEO Guide