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Facebook Worth $100 Billion?

By Galen Moore, Boston Business Journal
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BOSTON (CBS) – Facebook Inc. indicated Tuesday its IPO may swell, giving the company a valuation over $100 billion if the highly anticipated IPO prices at the top of its new range.

In an amended IPO filing, the Menlo Park, Calif., social network operator is now projecting an IPO price range from $34 to $38 per share. Facebook had previously set the range at $28 to $35 per share. The Facebook IPO is reportedly set to price this week.

At the new midpoint share price of $36, an IPO would net $6.4 billion for Facebook. The high end of its price range would value the company over $100 billion – icing on the cake of what was already set to be the largest Internet IPO ever.

The amended IPO filing contained few other changes. However, Facebook backed off an expected second-quarter closing date for its $1 billion deal to acquire photo sharing service Instagram. That acquisition is now set to close some time this year, according to the filing.

Facebook’s underwriters will likely exercise an over-allotment option, sometimes called a “greenshoe,” to sell 50.6 million additional shares, TechCrunch reported Monday.

Facebook was founded in 2004 by CEO Mark Zuckerberg while he was a student at Harvard University.

Lisa van der Pool of the Boston Business Journal can be seen weekdays at 6 a.m. on WBZ-TV.

You can follow Lisa on Twitter at @lvanderpool.

 

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