Popular social-networking site Facebook is the latest Internet company rumored to be preparing to go public, causing some investors to wonder if there's a tech IPO revival on the way.
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Facebook expects to hit the 500-shareholder threshold that would trigger regulations prompting it to publicly disclose financial statements and launch an initial public offering next year, according to a document given to potential private investors by Goldman Sachs, Reuters reports. USA TODAY confirmed the existence of the letter but could not obtain a copy.
Facebook and Goldman Sachs declined to comment. But market watchers say Facebook's path is clearly leading toward an IPO. "Facebook is on the runway; they just don't want to say, 'Here we go. Watch us,' " says Francis Gaskins of IPOdesktop.
If Facebook did go public, it would continue a reluctant return of technology companies to the IPO market. Last year, 45 U.S. tech and communications companies went public, up from 16 in 2009 and just four in 2008, says Renaissance Capital. That's still just two-thirds of the 68 tech and communications companies that went public in 2007, the year the broad stock market peaked.
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