Facebook is expected to start Nasdaq trading this week in what could be the largest-ever Internet IPO ( Initial Public Offering ) to value it at more than $100 billion. Reuters put an interesting visualization which shows Facebook stakes and in the event if Facebook’s IPO valuation stands at $100 billion, this percentage stake translates as units of billion dollars.
Mark Zuckerberg with 28.4% stake in Facebook will become one of the top ten wealthiest Americans after the IPO. And a long list of Facebook employees, Co-founder Dustin Moskovitz and venture capital firms with stakes in Facebook also stands to make more millions and billions.
According to a report on USA Today, Facebook IPO could add an additional $2 billion into state’s treasury by 2013, mostly for personal income taxes. Real estate prices near Facebook’s headquarters are also rising.
But the billion dollar question is how much effective are Facebook ads after GM pulls advertising from Facebook? Because you can’t survive for very long without a good revenue model.