Facebook considers record $10bn IPO


Facebook considers record $10bn IPO

Kathleen Hall

Facebook is reported to be considering a $10bn (£6.4bn) initial public offering by the end of the year, in move that would value the firm at more than $100bn.

The company is considering filing for the IPO before January, sources told Bloomberg news. If the $10bn floatation goes ahead it will be the largest technology IPO in history.

Earlier this year Facebook said it expects to be required by US regulators to disclose financial results by April 30, as US law states that companies cannot exceed 500 investors and remain privately held.

The news follows growing concerns about the way the firm handles the information of its 800 million users. According to reports, a new European Commission Directive will be introduced in January, which could curb the way Facebook gathers users’ information, and potentially undermine the firm’s revenue model.

In a blog post on Wednesday Facebook founder Mark Zuckerberg announced the creation of two corporate privacy roles, with the appointment of Erin Egan as chief privacy officer and Michael Richter as chief privacy officer for products.  Zuckerberg said the roles would strengthen the firm’s commitment to privacy.

“I'm the first to admit that we've made a bunch of mistakes. In particular, I think that a small number of high profile mistakes, like Beacon four years ago [an advertising system which reported back to Facebook on members' activities on third-party sites] and poor execution as we transitioned our privacy model two years ago, have often overshadowed much of the good work we've done,” he said.

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