The buzz around Facebook's IPO has been going on for months, and there had been rumors of it happening for years prior. The Internet giant is planning for one of the largest IPOs in tech history, but the actual event might be postponed due to a series of acquisitions and other business, according to CNBC. The company had been planning for the launch to occur in early May, but now it could be as late as June.
CEO Mark Zuckerburg and his management team have been busy with acquisitions (like Instagram for $1 billion) and are less focused on preparing for the share sale. While some investors and traders are frustrated with the possible delay, Zuckerburg's focus on actual business could be considered a positive thing for the health of the company.
The acquisitions and the purchase of a patent portfolio from Microsoft for $550 million also required a refiling of some of the company's financial documents with the SEC, which could take an additional amount of time.
Business section: Investing ideas
The delay in Facebook's IPO could act as either a positive event creating more buzz, or it could be negative and Facebook could end up like Groupon. Use Kapitall tools to analyze Groupon and some of Facebook's competitors. Do you think the IPO will still go well? (Click here to access free, interactive tools to analyze these ideas.)
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Kapitall's Danny Guttridge does not own shares of any companies mentioned above. The Motley Fool owns shares of Microsoft. Motley Fool newsletter services have recommended buying shares and creating a bull call spread position in Microsoft. The Motley Fool has a disclosure policy.
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