Facebook has just made a much-anticipated status update Wednesday:
“The Internet social network is going public eight years after its CEO Mark Zuckerberg started the service at Harvard University.”

This means anyone with the right amount of cash will be able to own part of a Silicon Valley icon that quickly transformed from dorm-room startup to cultural touchstone.
If its initial public offering of stock makes enough friends on Wall Street, Facebook will probably make its stock-market debut in three or four months as one of the world’s most valuable companies. Facebook, which is now based in Menlo Park, Calif., hopes to list its stock under the ticker symbol, “FB,” on the New York Stock Exchange or Nasdaq Stock Market.
In its regulatory filing with the Securities and Exchange Commission, Facebook Inc. indicated it hopes to raise $5 billion in its IPO. That would be the most for an Internet IPO since Google Inc. and its early backers raised $1.9 billion in 2004. The final amount will likely change as Facebook’s bankers gauge the investor demand.
Amid the buoyant optimism about Facebook’s prospects as a public company, some analysts see troubling parallels to the dot-com boom of the late 1990s, which turned into a devastating bust in the early 2000s. The biggest fear is that some investors will become so enamored with Facebook’s brand and brawn that the will try to buy the IPO share with little financial analysis or recognition of the risks.
The IPOs of Zynga and LinkedIn showed that success isn’t guaranteed even for profitable companies with huge followings. Zynga’s stock is currently trading just slightly above its IPO price. LinkedIn is considerably higher, but still far below the $122.70 record that it hit on its first trading day.
“It seems there’s so much excitement, innovation around Internet startups in Silicon Valley and yet a lot of these companies, have not performed well at all,” Kessler said. “The concern is the sustainability of the growth and profitability. It’s very, very difficult to prove those things out over a short period of time.”
Mark Zuckerberg, 27, has emerged as the latest in a lineage of Silicon Valley prodigies who are alternately hailed for pushing the world in new directions and reviled for overstepping their bounds. In Zuckerberg’s case, a lawsuit alleging that he stole the idea for Facebook from some Harvard classmates became the grist for a book and a movie that was nominated for an Academy Award last year.
VIA