For quite some time, there have been rumors that Facebook was going to go public and that an IPO would take place. These rumors started getting strong late last year with the expectation that 2012 would see Facebook become a public company.
Although there are many reasons why the company would go public, one of the biggest reasons was to generate capital as it fights one of its competitors in Google. Today, information has leaked out that Facebook’s IPO could be much sooner then many expected. In fact, according to the Wall Street Journal, the initial public offering could be filed as early as next Wednesday and at an estimated value somewhere between $75 billion and $100 billion, it will be one of the biggest IPOs thus far.
Due to the numbers involved with this IPO, Morgan Stanley will be underwriting it, but they will do so with the assistance of Goldman Sachs. The initial objective of this IPO will be to raise capital roughly in the neighborhood of $10 billion. What’s not clear at this time is just how the company plans to use the money on a long term basis.
Although this information may have leaked out, there is no public confirmation of this news by either the financial institutions nor Facebook themselves.