Facebook Gets Ready for a Possible 2012 IPO
A document gives a rare glimpse at the company’s financials, showing a $355 million profit on $1.2 billion in revenue for the first nine months of 2010.
NEW YORK - In the clearest sign to-date that it could go public in 2012, Facebook says that it will begin disclosing financial results by April of that year, the New York Times reported.
It said the news came in a document sent by Goldman Sachs to potential investors that stated that the Palo Alto-based company plans to increase the number of its shareholders above 500, which would trigger the need to report financials.
CEO Mark Zuckerberg has reportedly been wary of an IPO, but investor interest in the company has been strong.
The Goldman document also gave a rare look at Facebook’s current financials. The firm reported a profit of $355 million on $1.2 billion in revenue for the first nine months of 2010.
The Wall Street Journal said that full-year 2010 revenue likely reached $1.9 billion-$2 billion.
An investment from Goldman Sachs a few days ago valued Facebook at $50 billion.
The Goldman document to potential investors was sent out Thursday, often by messenger instead of email to prevent leaks, according to the Journal. In some cases, even spouses of recipients were asked to sign a confidentiality agreement, it said.