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Investing

Facebook May Raise Money Without Wall Street

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By Douglas A. McIntyre Published
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Facebook, which was supposed to have a $10 billion IPO in the spring that would value it at $100  billion, may elect bypass the traditional route of using bankers.

The Wall Street Journal reports that

Amid the news Monday that Facebook is planning a $10 billion IPO at a potential valuation of more than $100 billion, it also emerged that the company’s chief financial officer is signaling he may not need bankers’ help with the process.

The demand for the hottest growth company in a generation might be such that Facebook could go direction to mutual funds and pensions. It has been assumed that Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS) would be part of the process.

Facebook has 750 million members worldwide which makes its ability to sell advertising and multimedia like music unprecedented. The company is expected to have revenue of over $4 billion this year, which would be double 2010. It is believed that the company is highly profitable so its need for immediate capital may be very small–another edge Facebook has as it approaches the markets

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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