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Facebook Flotation Imminent
Facebook Chief Financial Officer Gideon Yu is on his way out of the company, according to a recent report published in The Wall Street Journal. The WSJ’s sources says that Facebook is now on the hunt for a CFO with ‘public company experience,’ which would set the scene for an IPO of the world’s most popular social network.
Yu joined Facebook in mid-2007, after serving as YouTube’s CFO through the video sharing site’s acquisition by Google. His departure comes after a recent report in BusinessWeek suggested that Facebook was running low on cash reserves and trying to raise an additional $100 million to bolster their dwindling bank balance.
In addition to Yu leaving, Facebook seems to have addressed its financial situation today, with a source telling the WSJ that ‘Facebook’s financials are strong and that the company expects revenue growth of at least 70% in 2009 compared with 2008 revenue - far above the estimates of some outside analysts.’
Such revenue growth - along with the tremendous buzz that surrounds the company - could make Facebook an attractive company to IPO investors, in spite of the current weak economy and stock market. However, most analysts suggest the social network is currently worth far less than the $15 billion valuation that Microsoft bought a small stake at during the height of the Web 2.0 boom (with the Dow also -14,000).
Nonetheless, a Facebook IPO would be the most exciting market event for Web companies since Google debuted, way back in 2004.
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