Facebook IPO will spawn many millionaires


The third week in May. Circle that sucker now if you sell luxury cars, watercraft, or anything else that indulges extravagant lifestyles. Because you could have a wave of freshly-enriched customers swooping in that week with money to burn.

All Things Digital is reporting their sources point to late May as the time for the long-anticipated and likely behemoth Facebook initial public offering.

Facebook wouldn’t comment, but an April 30 deadline is looming for the company to disclose financial data to the Securities and Exchange Commission after exceeding 500 outside investors last year.

Disclosing their financials without the ability to raise capital as a public company is said to put Facebook at enough of a competitive disadvantage to push them toward an IPO now, in conjunction with the reporting deadline.

The IPO is expected to value the company at up to $100 billion, and is pegged to raise up to $10 billion in fresh capital for the Menlo Park company. Mark Zuckerberg will likely structure the stock offerings to retain close control over voting power within Facebook.

A flood of new millionaires — and their newfound millions — will naturally mean more tax revenue for the State of California.

Jesse Garnier
Jesse Garnier is the editor and founder of SFBay. A Mission District native, he also teaches journalism as associate professor at San Francisco State University.

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