Facebook is preparing for what reuters.com declares a “blockbuster initial public offering that could cause at least a thousand millionaires.”
The company will become public in 2012 and is expected to make Facebook worth $100 billion making it the “most celebrated coming-out parties, from Netscape to Google Inc.”
Cnet.com said the social site has boosted salaries with stock shares over the years. Moves like these frequently happen with startup companies to keep “immediate costs down” and to give employees an incentive to stay and help the company grow.
What makes Facebook different, cnet.com said, is that unlike startups, over one-third of Facebook employees may become millionaires.
Lou Kerner, the head of private trading at Liquidnet, told reuters.com that Facebook has about 2.5 billion shares currently held by investors which translates to a $40 per-share price valued at $100 billion.
As the team moves to this venture they should keep in mind how one-third of the 500 Google employees left Google four years after it went public in 2004.