Facebook won't friend Wall Street with its anticipated blockbuster IPO until late next year, according to a report.
Facebook's IPO is expected to be one of the largest -- if not the largest -- in U.S. history, considering recent share share sales of Facebook's private stock have valued the company at more than $60 billion. The world's largest social network, which made friend a household word in terms of Web connectivity, has a reported 750 million global users or more.
Some industry observers had expected Facebook to launch its IPO by the first or second quarter of 2012, but the Financial Times reports that people close to the company say that company founder Mark Zuckerberg, Facebook's CEO, wants to now wait until next September or later in order to keep employees focused on product developments rather than a pay-out.
Many employees have been allowed to purchase Facebook's private shares as incentive for their work, thus some at IPO will likely reap millions -- far above and beyond otherwise competitive salaries.
Facebook feels no rush to IPO since the company is well funded through private placements and the market has cooled its IPO demand in the past month after a year of red-hot launches for technology and Web networking companies like Pandora and LinkedIn.
Last week, Groupon, the social daily coupon network company, reportedly delayed its anticipated IPO because of changing conditions on Wall Street but that has nothing to do with Facebook's IPO delay, some say.
There's really no reason to rush a deal, Lise Buyer, an consultant who advised Google through its IPO, told the Financial Times. The company doesn't need the money. It is a little easier to focus when you're private. They'll go when they're good and ready, not before.
but while Facebook has enough cash to operate without taking the company public, some investors in the world's largest social network may be ready to get the payoff on their investment, according to the report. Yet others, including Peter Thiel, recognized as a prominent Facebook investor, say it is best if a technology company like Facebook can hold off as long as possible on an IPO.
Google, for instance, waited six years before going public and the company has experienced considerable success since. Thiel told the Financial Times Google's delay was a good strategy, suggesting that Facebook could similarly benefit.