The initial public offering of Facebook is likely to be delayed until mid-June as the company deals with some of its recent financial deals, such as the purchases of Instagram and its deal with Microsoft for part of AOL's patent portfolio. While the company had not previously set an official date for its IPO, all signs indicated the company would begin trading public stock sometime in early-to-mid May, according to Kate Kelly of CNBC, which broke the news of the likely delayed IPO.
Now, Facebook will likely aim to launch its IPO in mid-June, Kelly believes. The company could launch its IPO in late May, although that is an unlikely scenario given the Memorial Day holiday weekend, which would result in a "less liquid, and therefore less hospitable" market, according to Kelly. Facebook will use the additional time before launching its IPO to disclose additional financial information to the SEC regarding its recent Instagram purchase and Microsoft patent deal.
Facebook's IPO is one of the most sought-after public offerings in recent history. The company announced its IPO filing on Feb. 1 and expects to raise $5 billion in funding, which would likely value the company at around $100 billion. Google, by comparison, raised $1.9 billion in its initial offering in 2004, which set the company's value at around $23 billion. Zynga, a notable business partner of Facebook, launched its public offering in December and was valued at $8.9 billion after one day of trading.