$100 Billion Facebook Value By Next Spring: IPO Speculation

The incredible phenomenon that is social networking giant Facebook, just keeps marching onwards and upwards. Back in March we told how the company was valued at $65 billion and then just afterwards learned that it had hit its highest value ever. We have now heard that Facebook could in fact, be valued at $100 billion by next spring.

Recently we told how Facebook investors wanted to offload around $1 billion of shares but that hasn’t affected sources quoted as “close to Facebook’s finances” as coming up with the massive valuation of $100 billion, according to Emma Barnett of The Telegraph, sourced from The Wall Street Journal. Facebook has an IPO (initial public offering) planned for next year and this valuation figure has emerged after anticipated advertising revenues set last year were surpassed, with the company set to make over $2 billion, pre-tax and interest, for 2011.

However there were cautions that assessing Facebook’s value at the time of the IPO next year would be difficult as it would not be possible to gauge how much market sentiment there would be at the time of going public, or indeed what the overall economic situation would be at that time. In the last year there has been massive investment in Facebook by companies such as Goldman Sachs, and founder and CEO Mark Zuckerberg has seen his personal fortune grow to around $14 billion.

Facebook has so far declined to comment on these latest valuations. What are your thoughts on Facebook being worth $100 billion by next year? Let us know by sending us your comments.