Social networking giant Facebook is reportedly delaying its IPO until 2012, giving the company more time to achieve more users and revenue without outside influence.
As reported by Bloomberg, chief executive Mark Zuckerberg is delaying any public listing in order to keep as much information private as possible about the business’s operations, especially considering the company has been under severe criticism for several matters including user privacy.
A Facebook IPO would be extremely significant for Silicon Valley, with the site valued at over $US20 billion.
According to “three people familiar with the matter”, any IPO will now take place in 2012, although some investors originally believed a sale might have happened as early as next year. Zuckerberg has previously said an IPO will happen, but only when the time is right.
The 26-year-old CEO is apparently focused on increasing the site’s user base beyond its current 500 million count, and increasing revenue, although he has already confirmed the site is turning over $US1 billion a year.
But there are other challenges. Facebook is focused on challenging rival Twitter with new services, and as the site gathers more users’ data it is coming under intense scrutiny as to how to deal with that information.
Zuckerberg is apparently extremely wary about this area, considering internet search giant Google has just faced off with authorities worldwide about its Street View debacle.
Facebook has come up against official regulators in countries including Canada and Australia, and Zuckerberg reportedly wants to avoid as many troubles as possible ahead of a share sale.
Some analysts have also pointed out Zuckerberg is extremely young, and could benefit from another two years of experience before the company ventures out for a public listing.
He is also publically battling an image problem. A Hollywood film to be released later this year attempting to document his rise to power is apparently less than endearing, painting Zuckerberg as arrogant and destructive when it comes to personal relationships.
Currently Facebook has about 1,400 employees and has a number of investors including Accel Partners, Microsoft and Elevation Partners, founded by U2 frontman Bono. Russian firm Digital Sky Technologies also holds a significant stake.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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