Facebook IPO Could Be Delayed Up Until June

Facebook IPO Could Be Delayed Up Until June
News
Like Us On Facebook
Like Us On Facebook

With it being just less then two weeks away from the potential launch of Facebook’s IPO roadshow, a string of acquisitions and other business distractions are becoming possible threats to the delay of the sale, say people who are familiar with the matter at hand. 

The Facebook team has been eyeing to have their offering in May and the roadshow to launch as early as May 7th. Trading of the stock would of started sometime on the week of the 14th.

In recent weeks, founder and CEO Mark Zuckerberg has been focused on running the business and making acquisitions such as buying Instagram for $1 billion to better prepare for the share sale. This made it hard for him and other managers to focus on the IPO preparations which are extremely tedious and time consuming.

As a result of this change in game plan, the roadshow will launch somewhere around May 14th or even late May depending on how things go. This would delay the initial trading until early or mid-June.

That’s because the Memorial Day holiday, which is May 28, will likely mean that the stock market is less liquid, and therefore less hospitable, to a new issue like Facebook for several trading days late in May, making it a bad time to be on the road or to launch trading.

Effectively, says one person familiar with the matter, Facebook is looking at a “Plan A, B, C, and a D” for its IPO.

A Facebook spokesman declined to comment on the expected timing of the deal.

Having a CEO like Zuckerberg whose bias is to hunker down and do his job rather than fixating on potential stock prices and investors may be more an asset than a liability.

However, Zuckerberg’s surprise decisions to buy Instagram for $1 billion over the course of a weekend and a $550 million patent portfolio from Microsoft have created the need for additional financial disclosures with the SEC, say lawyers and other people familiar with the matter, and answering all the Commission’s questions could take additional time.

Elite.

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Preston Waters

Preston Waters is a thinker. He's not your traditional philosophical persona, however, as he leaves no topic untouched. Covering all the bases, from business to women, Preston Waters is the ultimate man's man for Gen-Y.

More In News

Also On Elite

Women

I Am Who I Am: Why Making The Wrong Choices Led Me To Self-Acceptance

All of our lives, we avoid being “that girl,” for some reason or another. I can’t tell you how many times I’ve reprimanded friends and made them promise not to be “that girl” while discussing our lives. The more I’ve avoided becoming “that girl,” however, the more “that girl” seems to find me. I lived […]

World

Scientists Have Figured Out A Way To Change Bad Memories To Good Ones In Mice

Neuroscientists at MIT were able to tap into the emotional component within the brains of mice and turn memories associated with pain into pleasant thoughts. According to Wired, Roger Redondo and graduate student Joshua Kim first led the team in fostering positive and negative memories. They gave food or electric shocks to the mice based […]

World

Columbia University Students Carry Their Own Mattresses On Campus To Support Rape Victim

Columbia senior Emma Sulkowicz’s performance art, “Carry That Weight,” keeps picking up speed. For her senior performance art project, Sulkowicz chose to carry the dorm mattress on which she was allegedly raped until her accused rapist is expelled. Her project soon became a team effort with the help of “Carrying the Weight Together,” a group of […]

World

The Best Job Ever Is Here And Involves A Lot Of Weed, Sex And A Nice Salary

These days, it is actually possible to get a job revolving around weed (stoners, rejoice!). But, if rolling blunts for rappers doesn’t sound titillating enough for you, there are other options, like marijuana/sex journalism. Here’s the deal: The Denver Post’s pot-focused news site, The Cannabist, which launched late last year, is hiring a “sex columnist, with weed […]