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Facebook’s Publicly Traded Debut Delayed


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 Facebook’s Publicly Traded Adventure Pushed Back A Bit

Facebook Publicly TradedInvestors eagerly awaiting Facebook’s publicly traded debut will have to wait a few more days. Or months in this case. The king of social media has pushed back its initial public offering (IPO), keeping eager employees, early investors and salivating investment bankers at bay until perhaps as late as 2012. The concept of “Facebook publicly traded” was supposed to arrive in April 2012, but there was some speculation Facebook founder Mark Zuckerberg may bow to pressure and go for an IPO sometime this year.

Both scenarios for Facebook’s publicly traded start are now off the table. The Financial Times reported on Wednesday that sources familiar with Facebook are saying Facebook’s publicly traded life will not start until late 2012. The news comes just a couple of weeks after Zynga, the maker of the CityVille and Mafia Wars games for Facebook, and daily deal Web site Groupon also delayed their own IPO plans.

What’s The Deal With Facebook’s Publicly Traded Delay?

There are some crucial differences to note when examining Facebook’s publicly traded delay and those of Zynga and Groupon. Both Groupon and Zynga cited current market conditions as reasons for pushing back their IPO plans. In the case of Groupon, it’s fair to speculate the company’s recent tussles with the SEC are part of the reason for the delayed IPO, though it should be noted the company has not confirmed that.

Zynga also had a recent encounter with the SEC and the company is profitable, a claim Groupon cannot make, so the “market conditions” reason might really fly with the game maker. Facebook’s publicly traded delay was not attributed to market conditions, nor has the company had any noteworthy run-ins with the SEC.

Rather, sources say a vicious battle for talent in Silicon Valley has Zuckerberg wanting to keep key staff on board for as long as possible. Hence, Facebook’s publicly traded delay. Some staffers may opt to cash out when Facebook’s publicly traded debut occurs, opting to move on to what they perceive as greener pastures. In other words, it might prove to be a wise move on Zuckerberg’s to keep the carrot dangling in front of his minions for as long as possible.

Facebook Publicly Traded: Coming, Just Not As Soon As Hoped

Circle your calendars for sometime in the September-December 2012 time frame because we know this much: “Facebook publicly traded” will play in a theater near you at some point, just not as soon as many had hoped for.

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