Facebook set for $ 100 billion IPO?

The world’s largest social network, Facebook, is all set to file for its IPO. The surprising news, however, is that it is supposed to be valued at over $100 billion, CNBC reports.

Goldman Sachs is supposed to be the frontrunner to lead the listing, which is supposed to be completed in the early months of 2012. Earlier this year, Goldman Sachs invested $450 million, valuing the company at $50 billion.

Facebook is the largest social media network of its kind with over 700 million user accounts globally. But sceptical financial analysts point out to the fact that, in May, Facebook lost around 6 million users in North America and 100,000 users in Britain. Even globally, it only grew by around 12 million user accounts in May, as opposed to 14 million in April. Add to this the fact that Facebook hasn’t been able to penetrate into Chinese markets, with the Chinese internet user base touching 450 million.

Earlier this year, social networks Linkedin and Zynga successfully pulled off their IPOs and Groupon has recently sought a valuation of over $20 billion. Which brings us back to the question – is Facebook really worth $100 billion? As savvy digital marketers, what do you think? Is this the next tech bubble?

At Pipon Solutions, we keenly watch the dynamic Social Media space because we want to provide the best possible social media management service to our clients. Have a look at our services and do get in touch with us.