News of Facebook’s IPO has been floating around for the last year. At one of the largest IPO’s in tech history, they along with investors, stand to make a pretty penny. Also to profit from the IPO is none other than the state of California.
How exactly? Considering that Facebook is headquartered in the state in Palo Alto, the state will make hundreds of Millions of dollars from investors and employees through capital gains taxes. With a $9.2 Billion deficit, it’s sure to be welcomed by the Treasury department.
“An initial public offering from the Silicon Valley social networking giant is the most anticipated, with the legislative analyst saying the company could issue $10 billion worth of stock. California taxes the capital gains from stock sales.”
“In the coming months, the state’s revenue forecast will need to be adjusted somewhat to account for the possibility of hundreds of millions of dollars of additional revenues related to the Facebook IPO,” Legislative Analyst Mac Taylor wrote in the analysis of Gov. Jerry Brown’s budget proposal, released Wednesday.”
Facebook stands to do well with their IPO and something that is planned to happen before the second half of this year. Nearing 1 Billion users, the social network is at their peak with revenue estimated at reaching over $4 Billion in 2011, now is the time to go public.
Turning into a public versus private company could spell some potential issues however. Being public, you’re required to disclose a slew of different details, details that Facebook has always been extremely secretive about. Let’s just hope there’s no more privacy snafus hiding around.