Business

Facebook could go public by 2012

interns Contributor

Facebook, the social-networking site that is one of the most closely-watched private companies in the world, is likely to go public by the first quarter of 2012, say people familiar with the matter, at a valuation that could be pegged at north of $100 billion.

The company’s IPO, were it to happen by next spring, would probably be triggered by a section of the 1934 Securities and Exchange Act known as “the 500 rule,” these people say.

Essentially, the rule mandates that once a private company has more than 500 investors, it must begin releasing quarterly financial information to the Securities and Exchange Commission, just as public companies do.

Full story: Facebook IPO valuation could top $100 billion: sources