Unconfirmed: Facebook may soon file IPO

Juan Martinez, senior editor, Direct Marketing News

Facebook is preparing to file papers for an initial public offering (IPO), The Wall Street Journal reported on Jan. 28. The outlet reported that “people familiar with the matter,” say the IPO could come as soon as Jan. 31 and that Facebook is close to picking Morgan Stanley to lead the deal. Facebook declined to provide comment to Direct Marketing News when asked if the report was accurate. No confirmed reports have surfaced elsewhere.

Facebook's silence on the matter has led to much juicy speculation.

Bloomberg Businessweek has “two people” on the record saying Facebook's valuation is between $75-$100 billion.

Forbes says the valuation is overblown and that the IPO will be irrelevant because it won't unleash corporate capital spending or boost the overall venture financing market.

CNBC financial analyst Jim Cramer says a $70 billion valuation is a good deal for investors but “if it's priced at $110 billion, however, he doesn't think it will make that much money,” according to a CNBC post on Cramer's assessment.

Even Rupert Murdoch threw a jab at the valuation, tweeting, “Facebook [is] a brilliant achievement, but $75-100bn? Would make Apple look really cheap.”

Regardless of the ultimate financial outcome of the IPO, any additional capital should mean major opportunities for marketers, as Facebook would certainly invest heavily in driving additional advertising and advertising services revenue wherever possible.

Stay tuned to Direct Marketing News for additional coverage of the IPO as more information surfaces.