A new report from financial data experts PrivCo.com claims that it expects Facebook’s IPO to be delayed following a string of recent developments. The speculated $100bn IPO is expected to be put on hold for a number of reasons.
These reasons include; declining US visitors, impact of competition from Google+ and what is deemed as ‘Facebook fatigue’.
The group expects that these reasons and a number of others may see its IPO delayed until 2013:
“Facebook is now facing meaningful competition from a well-funded and viable alternative, Google+. Facebook’s last private stock valuation of $80 billion+ may no longer be justified on a risk-adjusted basis,” says Joseph Ranzenbach, VP at PrivCo. “Given that private companies rarely approve private-stock transactions at a decline in value, a virtual freeze on Facebook’s private stock sales for the next two quarters of 2011 is possible.”