Facebook’s revenue doubled to US$1.6bn in the first half of 2011 as its ad revenues soared, according to a news report. The report, from Reuters, quotes ‘a source with knowledge of Facebook’s financial data. The company does not disclose details of its financial performance, but sources told Reuters that net income in the first half […]
Facebook’s revenue doubled to US$1.6bn in the first half of 2011 as its ad revenues soared, according to a news report. The report, from Reuters, quotes ‘a source with knowledge of Facebook’s financial data. The company does not disclose details of its financial performance, but sources told Reuters that net income in the first half of 2011 was almost $500m. The leaked figures are the first indication of Facebook’s financial success since reports in June that it is preparing to make an initial public offering in October or November this year, valuing the company at around $100bn.
09/09/2011
Goldman Sachs is understood to be the frontrunner to lead the listing, which Sheryl Sandberg, chief operating officer of Facebook, described in May as “inevitable”.
The $100bn valuation would reflect a phenomenal pace of growth at Facebook. In January, Goldman invested $450m in the social networking business, valuing it at $50bn.
Its growing popularity among its advertisers and 750 million users has pressured entrenched web companies such as Yahoo, which ousted its chief executive Carol Bartz on Tuesday in the US.
Search leader Google launched Google+, a rival social network in June that attracted more than 10 million users in its first two weeks. Google is trying to increase the appeal of its social network by offering games such as Zynga Poker and Rovio’s Angry Birds.
Facebook declined to comment on its financial results.
