Facebook IPO could be delayed until June

25 Apr 2012

Facebook’s initial public offering (IPO) could be delayed until mid-June or late June, after reports suggested its recent acquisitions have pushed back preparations for the share sale.

CNBC reports Facebook’s roadshow launch was originally planned to begin on 7 May before going public on 17 May.

However, its sources suggest Facebook founder and CEO Mark Zuckerberg has been more focused on running the business, on its recent US$1bn Instagram acquisition and on purchasing for US$550m patents from Microsoft. As a result, extra financial disclosures are needed for the U.S. Securities and Exchange Commission (SEC), which may lead to more questions from the commission. As a result, preparations for the IPO have been reportedly delayed.

This could mean Facebook will launch its roadshow between the middle of or the end of May, aiming to go public in the middle of or the end of June.

Facebook could be valued at US$104bn when it goes public, which would make it the largest stock market flotation by an internet company to date.

Facebook revealed new figures on its revenue in its S-1 Filing recently. In the first quarter of 2012, it made US$1.058bn in revenue, down 6.5pc from the previous quarter but up 44pc from the same quarter last year. Advertising made up US$872m of its revenue.

It now has more than 900m members and sees 3.2bn ‘Likes’ and comments each day.