SAN JOSE, Calif. (MCT) — In a milestone for one of Silicon Valley’s hottest companies, Facebook on Wednesday filed papers announcing a $5 billion initial public offering of stock in the world’s biggest social networking business.
The stated size of the offering is smaller than expected, after weeks of speculation by analysts and industry observers who predicted Facebook might seek up to $10 billion. But documents indicated the figure is preliminary; the company could revise the numbers as it prepares to begin selling stock this spring.
With the filing of its initial prospectus, stating that it intends to trade under the symbol “FB,” Facebook is officially launching Silicon Valley’s most widely anticipated stock offering in recent years.
For the Menlo Park, Calif., company and 27-year-old co-founder Mark Zuckerberg, it represents an official transition from wildly successful startup to one of the valley’s corporate giants.
Industry sources expect the stock offering will set Facebook’s overall value at $75 billion to $100 billion. The papers filed Wednesday do not specify a price or how many shares are being offered, although they indicate the company will have two classes of shares; the company is expected to release those numbers in coming weeks.
But the filing provides an initial glimpse into details of Facebook’s operations and finances, which the privately held company has closely guarded until now. For example, the company disclosed that it earned $1 billion in profit on $3.7 billion in revenue last year, after sales rose 88 percent from 2010.
