Analysts envisioned that Facebook would start trading on Nasdaq by mid-May. Now it looks like Mark Zuckerberg has other business to deal with, which could prompt a delay in the much-anticipated initial public offering.
Looks like Mark Zuckerberg has things on his mind other than Facebook’s initial public offering.
The Facebook team announced plans to go public on Feb. 1st, inspiring a frenzy of excitement among users and investors. Reports said it would probably take until mid-May for Facebook stock to arrive on Nasdaq.
Now that May has arrived, sources have alleged that Zuckerberg – who announced Facebook’s plans to buy photo-sharing app Instagram for $1 billion in cash and stocks last month – is more concerned with acquisitions and “running the business” than the IPO, according to CNBC.
Facebook’s decision to put off the IPO may be a smart one. Because of the Instagram acquisition, as well as the $550 million purchase of 650 Microsoft patents, Facebook has to reevaluate the company’s worth and potential growth. The Securities and Exchange Commission will need Facebook to file updated information about the acquisitions before approving it for public trading.
Facebook announced Tuesday that “total revenues [came] in at $1.06 billion, up 45 [percent] year-over-year, but down compared to the $1.3 billion booked in Q4,” Yahoo reports. This inspired “at least one analyst to lower their valuations of the company,” according to Reuters.
Economist and analyst Max Wolff of advisory firm GreenCrest Capital told Reuters that Facebook’s reported revenue is less than expected.