Facebook $100 Billion IPO “Likely” In Early 2012

Facebook is likely to go public by the first quarter of 2012 at a valuation of $100 billion or more, according to reports surfacing today. The IPO is likely being triggered by a section of the 1934 Securities and Exchange Act known as “the 500 rule”. This rule mandates that once a private company has more than 500 investors, they must provide the SEC with quarterly financial reports like publicly traded companies do.

Facebook as indicated that it expects to cross the 500 investor threshold later this year. The company is also hoping to use the IPO to retain top staffers, according to CNBC.

A Facebook spokesman declined to comment on an IPO. But last month, COO Sheryl Sandberg called a Facebook IPO “inevitable”.