According to people familiar with the brand it has been announced that Facebook (NASDAQ: FB) will now be shared on the NASDAQ stock market. NASDAQ, being the home to several high-tech companies is extremely pleased about this new acquisition. The online social networking site will be traded under the symbol after FB and the company is preparing the initial public offering for May.
Analysts have said that this is an extremely strong acquisition for NASDAQ which is in constant competition with NYSE for new tradable companies such as Facebook, which has for a long time remained untradable.
This offering which could raise $10 billion is going to be the biggest Internet IPO since Google in 2004. Jay Franki, a senior managing director at FTI consulting said "winning Google further emboldened NASDAQ's reputation as being the exchange of choice for the technology companies. The Facebook listing I've seen as being similar to Google listing, which had a similar competition between the exchanges in a similar win for NASDAQ."
Amidst all this, NASDAQ's direct rival, NYSE has also made large gains this year in the technology market. NYSE gained LinkedIn as well as Pandora Media Inc. along with Chinese social networking site Renren. Despite this though many analysts believe that the acquisition of Facebook will be the biggest influence in the company gaining more tradable stocks in the technology field.
Last year listings and issuer services brought in close to $372 million for NASDAQ which accounted for 22% of the company's revenue. Even though the acquisition of Facebook will surely get many headlines for NASDAQ they will still be trailing behind NYSE as far as numbers and the value of company debuts.
Just this year the NYSE has launched 24 corporate IPOs that in total raised just under $5 billion. This is in contrast to NASDAQ which has launched 16 offerings which total $1.3 billion.
NASDAQ is understandably excited though about the $10 billion for the planned IPO of Facebook. Out of all US companies only Visa, General Motors and AT&T Wireless have held offerings that were larger than $10 billion.
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