Facebook's long-awaited Initial Public Offering is happening in just two and a half weeks time, the Wall Street Journal reports Tuesday.
Citing the usual anonymous sources familiar with the matter, the Journal says Facebook will begin its IPO roadshow on Monday May 7. That's when companies traditionally make the rounds of mutual funds, large banks and other major investors looking for multi-million dollar stakes. (We've reached out to Facebook for official confirmation.)
The name of the IPO roadshow game is to explain why your stock will be such a good buy, although in Facebook's case that shouldn't be too hard. (Our advice: just show them this video, and you'll be done in 150 seconds.)
Facebook CEO and founder Mark Zuckerberg will only be present for some of the roadshow, say the sources; COO Sheryl Sandberg will handle the rest, along with CFO David Ebersman. (We're hoping Sandberg still gets to finish work at 5:30pm.)
The roadshow will wrap up pretty quickly, and then it's on to the IPO itself, apparently set for Friday May 18. As we've written before, the IPO should shift $10 billion worth of Facebook stock, leaving the social network with an overall valuation of $100 billion — and turning Zuckerberg, who owns a controlling stake of voting shares, into one of the world's richest men.
Someone else who will be watching the IPO closely: Kevin Systrom, founder of Instagram. We've already noted that the $1 billion Facebook purchase of his app made Systrom worth $400 million on paper, but we've since learned that much of that $1 billion deal was for Facebook stock.
A wildly successful IPO could theoretically make Systrom a billionaire, albeit at a much lower level than Zuckerberg.
So now that it's finally happening, what are your thoughts on the Facebook IPO? Will the social network be wildly overvalued, or find its true level? Let us know in the comments.
Additional Facebook IPO Coverage
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- Zuckerberg to Potential Shareholders: Facebook Is on a Social Mission
- Facebook IPO Filing Flings Open the Social Network Kimono
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- Sheryl Sandberg Was Facebook's Best-Paid Employee in 2011
Facebook launches with humble beginnings that most people have seen dramatized in The Social Network by now. It was a small social site backed by only a little money, and limited just to the undergrads at Harvard. Right out of the gate, Facebook turned down offers from an unknown investor and Friendster, each offering $10 million. This was, of course, when the company was still called TheFacebook.
Image courtesy of Flickr.
Facebook became more legitimized as it moved into more colleges, and then expanded to the public. Microsoft signed a large advertising deal with Facebook, an event that began a long, positive relationship between the two companies.
Just a month later, Yahoo made a $1 billion offer to buy Facebook, but it was rebuffed after Yahoo's stock dropped and the company had to lower to $800 million.
Image courtesy Ludovic Toinel; Flickr.
In an interview with 60 Minutes in January, Mark Zuckerberg said there was no chance of a Facebook IPO that year. In August, Facebook gave itself a valuation of $4 billion, then began letting fully vested employees sell 20% of their stock based on that valuation.
Image courtesy of 60 Minutes.
Facebook gets $200 million investment from Russian Digital Sky, who bought 1.96% of the company with that. That investment raised Facebook's valuation to $10 billion.
Two other estimates of wealth came out later in 2009 that lowered Facebook's valuation, probably as more terms of the deal with Digital Sky became clear.
Image courtesy dborman; Flickr.
Zuckerberg is still coy about an IPO, saying there is "no rush," and proving that Facebook doesn't need the money.
Image courtesy of JD Lasica; Flickr.
Trading on secondary markets suggests Facebook is the third most valuable web company in the United States. As private investors sold their stakes, valuations of the company soared as high as $56 billion.
Image courtesy Dan Farber; Flickr.
Goldman Sachs and Digital Sky Technologies drop a massive $500 million cash infusion into Facebook, pushing its value upwards of $50 billion. According to USA Today, that valuation exceeds companies like eBay and Nike.
Facebook also launches an $1.5 billion equity offering through Goldman Sachs, letting some private investors buy a piece of Facebook.
Image courtesy of AMagill; Flickr.
Reports circulate that Facebook's IPO could exceed $100 billion, and that it might go public during the first quarter of 2012.
Image courtesy of Andrew Feinberg; Flickr.
Facebook halted trading of its shares in secondary markets for three days starting Jan. 25, a possible indicator the company's long-awaited IPO is coming soon.
Image courtesy J. Fudyama-Powers; Flickr.
Facebook launches with humble beginnings that most people have seen dramatized in The Social Network by now. It was a small social site backed by only a little money, and limited just to the undergrads at Harvard. Right out of the gate, Facebook turned down offers from an unknown investor and Friendster, each offering $10 million. This was, of course, when the company was still called TheFacebook.
Image courtesy of Flickr.
By 2005, "TheFacebook" was becoming more and more interesting to potential investors. They waved off bids from the likes of NBC, The Washington Post Group, and two separate attempts from both MySpace and Viacom/MTV.
Image courtesy of wwwes; Flickr.
Facebook became more legitimized as it moved into more colleges, and then expanded to the public. Microsoft signed a large advertising deal with Facebook, an event that began a long, positive relationship between the two companies.
Just a month later, Yahoo made a $1 billion offer to buy Facebook, but it was rebuffed after Yahoo's stock dropped and the company had to lower to $800 million.
Image courtesy Ludovic Toinel; Flickr.
After a lucrative advertising relationship, Microsoft invests heavily in Facebook, putting in $240 million for 1.6% stake in the company. This raised Facebook's estimated worth to $15 billion, after only three years of existence. Despite this, Zuckerberg said the possibility of an IPO is "years out."
Image courtesy of iStockphoto, michalPuchala
In an interview with 60 Minutes in January, Mark Zuckerberg said there was no chance of a Facebook IPO that year. In August, Facebook gave itself a valuation of $4 billion, then began letting fully vested employees sell 20% of their stock based on that valuation.
Image courtesy of 60 Minutes.
Facebook gets $200 million investment from Russian Digital Sky, who bought 1.96% of the company with that. That investment raised Facebook's valuation to $10 billion.
Two other estimates of wealth came out later in 2009 that lowered Facebook's valuation, probably as more terms of the deal with Digital Sky became clear.
Image courtesy dborman; Flickr.
Zuckerberg is still coy about an IPO, saying there is "no rush," and proving that Facebook doesn't need the money.
Image courtesy of JD Lasica; Flickr.
Trading on secondary markets suggests Facebook is the third most valuable web company in the United States. As private investors sold their stakes, valuations of the company soared as high as $56 billion.
Image courtesy Dan Farber; Flickr.
Goldman Sachs and Digital Sky Technologies drop a massive $500 million cash infusion into Facebook, pushing its value upwards of $50 billion. According to USA Today, that valuation exceeds companies like eBay and Nike.
Facebook also launches an $1.5 billion equity offering through Goldman Sachs, letting some private investors buy a piece of Facebook.
Image courtesy of AMagill; Flickr.
Reports circulate that Facebook's IPO could exceed $100 billion, and that it might go public during the first quarter of 2012.
Image courtesy of Andrew Feinberg; Flickr.
Facebook halted trading of its shares in secondary markets for three days starting Jan. 25, a possible indicator the company's long-awaited IPO is coming soon.
Image courtesy J. Fudyama-Powers; Flickr.
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