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Facebook to hold IPO

10 January 2011 08:42 (UTC +04:00)

Baku â€“ APA-Economics. Analysts are concerned that when Facebook founder Mark Zuckerberg moves forward with the initial public offering (IPO) of his social networking website this year a second dotcom boom on the markets will occur, Social Barrel reported.

Investors have been driven to a frenzy of speculation about the timing of an IPO after Goldman Sachs and a Russian investment firm put a staggering $500 million into Facebook last week.

Rumors have also been circulating this week that LinkedIn may stage a flotation during the first quarter of this year, prompting the eccentric billionaire to act sooner. Twenty-six year old Zuckerman, who is now estimated to be worth $6.9 billion, denies the IPO rumors.

Facebook was valued at a whopping $50 billion when Goldman and Russiaâ€™s Digital Sky Technologies made their investment last week, ranking it far above the 100th biggest company on the planet, Boeing.

Goldman sent documents to clients which have since leaked showing that Facebook made about $1.2 billion in revenue during the first 9 months of 2010 and about $355 million in profit during the same period.

Goldman Sachs is selling $1.5 billion in shares of Facebook to private clients