The Social Network may not hit the trading floor till “mid June”, according to reports
Forget IPO’s – this man has other things on his mind.
The most hotly anticipated Initial Public Offering since Google may be put on the backburner for a few weeks, as CEO Mark Zuckerberg focus on other business at hand including “a string of acquisitions and other business distractions”, ‘people familiar with the mater’ told CNBC.
The Social Network were planning to start their investor road show early next month on May 7th, but with the recent impromptu $1bn purchase of Instagram and litigation with Yahoo, Zuckerberg and Co may have other pressing matters on their agenda.
Facebook also said it would fork out a massive $550 million to Microsoft for a cache of patents this week, which could prove crucial in its litigation with Yahoo, which it has since countersued, accusing the former Internet darling of pinching some of its patented technology, also.
If Facebook’s investor roadshow is put back several weeks until possibly May 14 or later, it means share trading probably won’t start til mid June.
The IPO could coin up to $5-10 billion for the network, and send it ‘FB’ as it will be called on the Nasdaq, market valuations through the roof.
Just this week Mark Zuckerberg creation showed net profit slump of 12% to $205m on revenues of $10.6bn, which it attributed to rising costs and revealed it now topped the 900 million membership mark.
Read: Facebook Profit Tumble (WHY Socialising Aint Free)