Facebook is looking to have a valuation of somewhere around $96 billion. This would set a record IPO for a tech company, pushing past Google’s $23 billion valuation in 2004.
Being valued at nearly $100 billion would make it rival the current market values of more established companies like Amazon.com and McDonald’s despite having a fraction of the revenue and profit. Chief Executive Mark Zuckerberg has a stake worth as much as $18.7 billion.
A large part of Facebook’s challenge is convincing marketers that ad spending leads to sales with things like “Reach Generator.” “The bigger issue [with Facebook] is the core business,” said Morningstar analyst Rick Summer. “There’s still no good understanding for what advertisers are paying for.”
Source: WSJ
