Facebook Files IPO, Hopes to Raise $5 Billion

Facebook has gone public. The social networking giant filed papers for what is expected to be the largest initial public offering for any internet company. Facebook said that it hopes to raise $5 billion in its IPO.

The Associated Press reports that anyone (with the right amount of cash) can now own a part of the internet giant. Industry experts expect the company to make its stock market debut in three to four months as one of the world’s most valuable companies.

Facebook said in its regulatory filings with the Securities and Exchange Commission that it expects to raise $5 billion in its IPO. If Facebook raises its expected $5 billion it will surpass Google’s record set in 2004 with $1.9 billion.

Some people aren’t sure, however, that Facebook will be able to raise the $5 billion. Scott Kessler, a Standard Poor’s equity analyst who follows Internet stocks, said that internet companies may have a hard time finding real world investors even if they are extremely popular. Kessler said:

“It seems there’s so much excitement, innovation around Internet startups in Silicon Valley and yet a lot of these companies … have not performed well at all. The concern is the sustainability of the growth and profitability. It’s very, very difficult to prove those things out over a short period of time.”

The LA Times reports that Facebook is currently used by more than 800 million people around the world and is one has become one of the most valuable platforms for companies. Do you think Facebook’s IPO will raise $5 billion?

Here is Facebook’s IPO filing.

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