Palo Alto, CA – Unnamed sources at Facebook have disclosed the social networking giant will not file for Initial Public Offering approval until 2012. They indicated the reason for the delay is so they can continue to grow.
Mark Zuckerberg, Chief Executive Officer and founder of Facebook still maintains the right to push for a stock offering at any time. However experts say Zuckerberg could benefit from some patience. As Facebook adds users, profit and consequently value, they could stand to dramatically increase the profit from an I.P.O.
Facebook passed the 500 million user mark this month, and is currently valued at $24.9 billion. Waiting for the right time to offer stock will allow Zuckerberg to further develop the skills necessary to navigate a company through volatile quarterly reporting periods while balancing concerns around privacy.
Once public, Zuckerberg and his officers will be responsible for vast amounts of data and financial reporting as a public company. So what does Zuckerberg think? He says Facebook will go public “when it makes sense”. He did not elaborate.
There is certainly internal pressure to issue stock from employees who wish to see their equity increase in value. As was the case for Google, an I.P.O. will undoubtedly make some people very rich. Sharespost, a private equity trading company says Facebook’s current value of $24.9 billion is more than double the valuation completed in March of this year.
In addition to the 500 million users, Zuckerberg is challenged by a growing payroll (approaching 1,400) and increasing oversight regarding privacy concerns.
Regardless of the upcoming challenges, Facebook sits on a strong footing. Investments by a private capital firm has raised nearly $210 million in a single deal. As Facebook looks for more liquidity, users, profit and infrastructure, Zuckerberg will continue to hone his executive skills and may very well lead Facebook into the future it’s employees hope for.