The world’s largest social network, with more than 901 million users, is set to become the most valuable U.S. tech company after going IPO. Google went public in 2004 with a valuation of $23 million.
Accel Partners, Digital Sky Technologies, Goldman Sachs, Greylock Partners and other early backers are among the investors expected to win big. Goldman Sachs plans to sell 13.2 million shares, according to PIonline.com. Reports also state Accel Partners will sell about $1.3 billion worth of stock while Digital Sky Technologies will sell 157.4 million shares.
The young tech company, born in Zuckerberg’s Harvard dorm room in 2004, is receiving both criticism and support in the days before the IPO release. Institutional investors have expressed worry about Facebook’s advertising model. There is also concern about Facebook’s slow growth on mobile. On the other hand, Apple co-founder Steve Wozniak showed his support for Facebook in a TV interview by saying he would buy Facebook stock regardless of the official company valuation, according to Bloomberg.
The 33 underwriters of Facebook’s IPO will have first dibs on stock. This means huge investment banks will direct where the stock traffic goes — generally, to the portfolios of big investors and well-known executives. Zuckerberg is appealing to average investors by allowing a percentage of Facebook’s shares to be purchased in E-trade.com, according to Time magazine.
Watch the video above to find out more about Facebook’s IPO. Plus how, and if, you should get in on the action.