Facebook raises share price

Value increases as GM pulls out of advertising.

By Martha Gill Published 16 May 2012
Photograph: Getty Images
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.

 

 
 

1 comment

John Cheese's picture

Thu, 2012-05-17 01:16 — John Cheese (not verified)

Ha, Ha, Brazilian Facebook co-founder Eduardo Saverin is now renouncing his US citizenship just as he cashes in on the IPO this week. Tax savings to him of $67 million. He comes to the US as a teenager, gets the benefit of our best schools,c0-starts a company & then when he hits it big- he bolts! Why aren't people pooping on him like they do on the s0-called "evil" Romney?? Where are the Occu-poopers on this?

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