Facebook Estimating Value at Nearly $96 Billion in IPO

Posted May 3rd, 2012 at 5:35 pm (UTC-5)
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Facebook, the social network website used by more than 900 million people around the world, is about to go public.

Facebook announced Thursday that its initial public offering will be between $28 and $35 a share. At this price, Facebook would be worth as much as $96 billion.

Facebook executives plan to hold what they call a “road show” in several major U.S. cities to lure investors. They expect shares to be available for buying and selling on the NASDAQ stock index in mid-May.

An initial public offering is the price of a share when it first becomes available to traders. Owners of a company usually decide to go public to raise funds for expansion.

Chief Executive Officer Mark Zuckerberg started Facebook in his dormitory room at Harvard University just eight years ago. It has since grown to more than 900 million users. They use Facebook to post photographs and write details about their lives, often reconnecting with long-lost friends and family members.