Jan 23, 2011

Facebook Reveals Likely IPO Date

Facebook has confirmed that it has raised $1.5 billion in fresh funding, and with it, signaled that an IPO sometime in 2012 is increasingly likely.
In its funding announcement this afternoon, the company says that, “Even before the investment from Goldman Sachs, Facebook had expected to pass 500 shareholders at some point in 2011, and therefore expects to start filing public financial reports no later than April 30, 2012.”
When news of the deal was first reported earlier this month, it appeared to many that Facebook was looking to evade the reporting requirement via a “special purpose vehicle” that Goldman Sachs had setup that would in theory keep the company under 500 shareholders.
Now, Facebook is saying that regardless of the special purpose vehicle — which Goldman eventually limited to only non-U.S. investors in the wake of “intense media coverage” — the company would’ve been forced to begin disclosing financials in 2012.
That doesn’t necessarily guarantee that Facebook will also file to become a publicly traded company at that point, but it makes it all the more likely given the company will already be reporting to the SEC.

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