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Social network monstrosity Facebook will being it's IPO as early as Wednesday and will end with a value between $75 billion and $100 billion.
Facebook has been on the rise since it's inception and there has been no stop to the snowball effect it's had on the world. With astonishing numbers of users and revenue there is no surprise on how hotly this IPO will be.
Facebook's enemy Google, one of the last big IPO in the tech industry, went public at a measly $1.9 billion in 2004 which Mark Zuckerberg plans to crush.
What does this mean to Facebook and California?
1. The Initial Public Offering could raise close to $10 billion in the offering giving Facebook more money to play with.
2. Zuckerberg's billions will go from being on paper to being in the bank.
3. California will get one amazing tax input. California has been struggling financially in recent months and years, and with a massive IPO like this, California will get a nice piece of the pie. In Google's $1.9 billion IPO California received $380million from 16 Google insiders.
Dotcom IPOs are tricky, LinkedIn and Pandora are trading way below that of their face-value and hundreds of others are right there with them. Dotcoms run well as private entities because they can change and adapt quickly, not to mention the majority of docoms value is not in revenues it's in made up numbers and figures. Facebook has a very strong revenue stream and their recent profits have been astonishing, which is why I think this offering will work. But if their numbers drop even slightly things could take a turn for the worse.
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