Facebook Inc.’s much awaited initial public offering (IPO) is finally around the corner, as the social networking giant filed its papers with the U.S. Securities and Exchange Commission and laid bare details of its current financial situation and future plans.
But as details of the Menlo Park, Calif.-based company emerge, one question is bound to emerge in investors’ minds: is the company worth between $75 and $100 billion dollars, based on its initial IPO estimated to be around $5 billion?
In its filing with the SEC, Facebook quoted handsome numbers, saying it had earned revenues of $3.85 billion in 2011, with a profit of $1 billion. More importantly, it revealed that it had 850 million users on its network.
And even more valuable to investors and advertisers, more than 50 percent of those users are active daily users of the service. In addition, around the same number use Facebook mobile from their smartphones.
