Facebook flotation rumours escalate

By | Published on Tuesday 14 June 2011


“Facebook to float” stories have been doing the rounds for years, but according to CNBC, with LinkedIn, Groupon and Pandora all going the IPO route as we speak and kicking off a brand new era of “stupid money being invested in very questionable business models”, Facebook could float within the next twelve months.

The US news channel reckons Goldman Sachs is currently bidding to manage the Facebook flotation, which the social networking firm’s COO recently admitted was now “inevitable”. Of all the digital flim flams going for the big money, Facebook is, of course, probably the most viable business, though it’s clearly not worth anything near the $100 billion some people reckon the share sale might value it at.

Indeed, there was a report last week suggesting that Facebook has peaked in terms of user numbers in Western countries, with subscribers reportedly falling by six million last month in the US alone. According to Inside Facebook, over a million users dropped out in Canada too, and 100,000 each in the UK, Norway and Russia. Though some territories are still going through periods of big sign ups – especially Mexico and Brazil – so overall the Facebook audience is up.