The Rising Influence of Rising Affluence

[wow_happens28]

Facebook--99X earnings for IPO

I guess there is one born every second?
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http://timesofindia.indiatimes.com/business/international-business/Facebook-Initial-public-offering-price-set-at-28-35-values-itself-at-96billion/articleshow/13004158.cms

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The author has posted comments on this articleAgencies | May 5, 2012, 05.54AM ISTFacebook is betting its growth prospects will persuade investors to pay 99 times its earnings for its initial public offering , a higher multiple than 99% of companies in the S&P 500 Index.

The world's most popular social-networking site will seek a market value of as much as $96 billion, offering shares at $28 to $35 each, a regulatory filing showed. The Menlo Park, California-based company will begin meeting investors next week and is scheduled to price the offering on May 17, data compiled by Bloomberg show.

Facebook and its holders plan to sell about 337.4 million shares. At the high end of the range, the IPO would raise $11.8 billion, making it the largest initial share sale on record for an internet company.

The high end of the proposed valuation would make Facebook more costly than every member of the S&P 500 relative to earnings except for Amazon.com, Leucadia National and Equity Residential, data show. While 27-year-old CEO Mark Zuckerberg has amassed more than 900 million users since starting Facebook in 2004, his challenge is to stem slowing sales growth amid increasing competition from Google and Twitter.

The pricing indicates Zuckerberg's total holding is worth about $18.68 billion, making him richer than Microsoft Corp's Steve Ballmer and Wipro's Azim Premji.

The IPO would further enhance Zuckerberg's financial position. According to Forbes 2012 list, Facebook's co-founder scored 35th rank with a wealth of $17.5 billion.