With all the Facebook investment and valuation talk swirling about, I stated yesterday that if Facebook was going to do an IPO then that would be news. Well, that ‘announcement’ is not imminent according to Facebook CEO Mark Zuckerberg as he addressed the Reuters Global Technology Summit.
Zuckerberg’s comments really didn’t add any fuel to the fire or speculation about investment in the company. In fact, he made sure that it was clear that all of the talk right now is just that; talk. Reuters reports:
The 25-year-old co-founder of Facebook said he is always open to partnerships and investments, but stressed that Facebook can achieve its business goals with its current financial base — despite numerous media reports that it has had talks on a new round of funding with various investors.
Zuckerberg did not confirm reports from earlier in the week like those from TechCrunch regarding an $8 billion valuation for a $200 million investment.
“Some of the rumblings that people are reporting on, are just different conversations that have happened, but there’s really nothing new to talk about there,” he added in a telephone interview from Palo Alto, California.
So what about going public? What about cashing in on the prize that has been built? It doesn’t appear that there is any hurry to go in that direction.
“I know for a lot of companies the IPO is the endpoint or the goal,” Zuckerberg said. “For us it will be an event on the path to where want to get eventually.”
Asked when the time would be right to float shares to the public, he said the 5-year-old company was still “a few years out from that.”
So for now it appears as if it is business as usual at Facebook. There is limited public drama (thankfully). They are tracking for a 70% increase in sales over last year and are currently working with at least 70 percent of the top 100 advertisers in the US while building a direct sales staff for its growing international presence as well. It looks like they are interested in continuing to build the availability of Facebook to other websites (i.e. Facebook Connect) and moving toward their own ad network of sorts.
Some might say it’s even a little boring over in Facebookland. So if there is no drama, soap opera or rumors to talk about with Facebook what else is there? Oh yea … business. If what is being said is true and the company is as sturdy as it appears to be there could be plenty of that to be had in the future. Imagine this scenario for a change of pace. Fast forward a few years and there is an IPO that is for an Internet company that is actually cash flow positive and a viable business for more than just the next 12 or so months after the offering. Now that would be news.