Facebook IPO Penciled-In for May 18

By Beecher Tuttle May 03, 2012

Facebook's highly-anticipated initial public offering (IPO) is tentatively scheduled to kick off on May 18, pending the success of the social network's investor "road show," sources close to the situation told the Wall Street Journal.

Like any soon-to-be-public company, Facebook and its executives are set to embark on a series of meetings with potential investors – typically known as an IPO road show – where they will privately relay their strategy and attempt to drum up financial support. Most road shows last between one and two weeks, giving further credence to the May 18 IPO date.

Sources told the Journal that Facebook CEO, Mark Zuckerberg, will be involved in the process, but won't attend every meeting. Facebook's baby-faced chief executive recently caused a stir in the investor community by no-showing a March analyst meeting where the company laid out its recent financials.

Facebook executives will wait to set the final share price for the IPO until May 17, people familiar with the deal told the paper. It is widely anticipated that Facebook will raise between $5 billion and $10 billion, valuing the company at more than $100 billion.

However, investor fervor slowed recently after the social network issued less-than-inspiring first quarter results. Facebook's posted revenues of $1.058 billion, up 46 percent annually, but down six percent from the previous quarter.

The report ends two full years of sequential growth for Facebook and raises possible red flags for cautious investors. Facebook also saw its profit shrink to $205 million, down 12 percent sequentially.

The numbers raise legitimate concerns because Facebook actually increased its user base during the period in question, meaning the company's average revenue-per-user is gradually slipping. Company officials blamed the weaker-than-expected quarter on post-holiday-season advertising lulls.

Further complicating Facebook's public stock offering is the hazy IPO climate, decimated by Europe's looming financial crisis and seeds of doubt still remaining in the U.S. economy. Stay tuned – it's about to get interesting.




Edited by Brooke Neuman

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Cortana/Siri vs. Alexa & The Road To Robotic Post Smartphone Era

By: Rob Enderle    5/3/2016

Last week Microsoft made it clear that Cortana would only work with Microsoft's browser and search products making people question its cross platform …

Read More

Looking For The Next iPod/Echo

By: Rob Enderle    4/29/2016

The Amazon Echo, not the Apple Watch, became the last iPod-like product largely because of a far more accessible price point, a more compelling name, …

Read More

Apple Needs Reset, Not Elon Musk

By: Doug Mohney    4/29/2016

Apple's 13 percent sales decline and subsequent stock price drop this week has lead to the usual crazy talk about how to "fix" the company. Vivek Wadh…

Read More

Is the Apple Bubble Finally Bursting?

By: Andrew Bindelglass    4/28/2016

Over the past 13 years, Apple has been one of the most successful companies in the world of tech, posting sales growths in 51 straight quarters. That …

Read More

Shared-Space Providers (Airbnb) Poised to Beat Ride-Sharers (Uber)

By: Steve Anderson    4/28/2016

Travel may be starting to make a bit of a comeback, as a new report suggests that shared-space providers like Airbnb and WeWork are on the rise.

Read More