Feb 1, 2012

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Facebook Preparing for $10 billion IPO

Facebook Preparing for $10 billion IPO

Facebook has grown since its initial launch in 2004, but no one would have expected such a meteoric rise in such a short period of time. The social network, reportedly, is preparing to file an initial public offering in the near future for as much as $10 billion, one of the largest openings ever for a U.S. company. The $10 billion IPO would value the company’s net worth around $75 to $100 billion, making the IPO the 4th largest for a U.S. outfit (behind companies like Visa, GM, and AT&T). ┬áIf Facebook is valued at $100 billion, then it would be worth roughly half of Google’s net worth and around the same amount as fast food giant McDonald’s.

The final value of Facebook could be determined by a myriad of factors such as investor demand, IPO market, and possibly even the health of the European economy, according to The Wall Street Journal.

Facebook has roughly 800 million active users as of September 2011, with a significant portion of them actively playing social games on the site. This recent explosion in social games has helped create dozens of new development studios that cater to the new found social game market and has sparked several high-profile acquisitions by traditional game publishers of these new studios.

Facebook could file it’s IPO documents as early as Wednesday but a definite date has not been set yet.

What do you think of Facebook’s success and its impact on gaming? Sound off in the comments section below.

[Source: Gamasutra]