Facebook raises share price

Value increases as GM pulls out of advertising.

Photograph: Getty Images

Facebook will increase the price range for shares from $28 - $35 to $34 - $38, which will potentially put its value above $100bn.

The company said the narrower, higher range was a result of strong investor demand. The news came as  General Motors said it planned to pull out of advertising on Facebook, citing worries about revenue growth.

Facebook has 900m users, and made a $1bn profit last year. The new valuation would allow it to overtake Disney, Ford, and Kraft Foods.

The company is facing regulatory delays over its purchase of Instagram, after the Federal Trade Commision launched an investigation into the takeover. Facebook since ammended its expectations about when the deal would be closed, saying it predicted the acquisition by the end of the year.

Facebook will begin trading on Friday, under the ticker symbol FB.