Update: Facebook may be considering IPO after 2012
It's said to be working on a business plan, revenue goals before launching effort to go public
Computerworld - Reports are circulating on the Internet that Facebook executives are a few years away from taking the company public.
Facebook board member, venture capitalist and PayPal co-founder Peter Thiel told Reuters on Monday that the company is looking at making an initial public offering sometime after late 2012. With more than half a billion users and a massive online presence, investors are likely to be extremely interested in getting a bite of Facebook.
Thiel, speaking to a Reuters reporter at the TechCrunch Disrupt conference in San Francisco, added that the decision to go public will depend on the social networking company's hitting specific revenue goals, as well as the long-awaited development of its business plan.
"It probably will IPO at some point," Thiel told Reuters. "The lesson from Google seems to be that you don't go public until very late."
A Facebook spokesman told Computerworld that the company has no plans for an IPO at this time.
Although Facebook has battled privacy issues this year, the company has been on a roll. The social site hit the milestone of accumulating 500 million users this past July. And in the month of August, Facebook edged out industry behemoth Google in the amount of time U.S. users spent on a particular Web site.
Zeus Kerravala, an analyst at the Yankee Group, said Facebook is smart to not jump into an IPO right now.
"Capital markets are still a bit soft so waiting isn't a bad idea," he added. "Waiting means the softness in the economy should be gone so the IPO is likely to have more upside."
Kerravala said Facebook needs to come out with a business plan and holding off on going public will give them time to come up with something solid.
"They need to build a firmer plan, but they do have some time to do so," he noted. "Going public creates Wall Street interest, gets you written about in the business press, raises the profile of the organization and legitimizes the company in many ways."
Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at @sgaudin or subscribe to Sharon's RSS feed . Her e-mail address is email@example.com.
Read more about Web Apps in Computerworld's Web Apps Topic Center.
- Six Ways Your Small Business Can Save with Internet Phone Service Traditional phone systems present two main problems for businesses: limited features and high costs. As a result, small businesses are migrating to Internet...
- Face Time Anytime Real-time communications facilitates team collaboration from nearly anywhere in the world. With facts and figures you can use to justify an investment
- Now is the time to implement a video conference solution Video conferencing is getting a lot of buzz lately due to the recent cost decrease, making it tangible for many law firms. It's...
- Video drives engagement Achieving maximum results means building a solid platform and network infrastructure. As digital age unfolds, it's clear that the ability to communicate effectively...
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources...
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users? All Web Apps White Papers | Webcasts