Social networking giant priced at $38 a share
Facebook has announced that it will launch its IPO at $38 dollars a share, with a valuation of between $96 and $104 billion.
The social media firm is launching its highly anticipated IPO at the upper end of the estimated price of $34 to $38 a share, which is said to be indicative of high demand.
The decision will bring more scrutiny than ever for the social medial pioneer, which industry experts agree has yet to achieve its full potential.
Facebook owes a great deal of its success to the rise of social gaming on the platform, which brings the company untold millions in revenue, and has become a major factor in determining its profitability.
Zynga, the giant of the social gaming world, is reportedly responsible for over twelve percent of Facebook revenues.
Prices are expected to fluctuate drastically as shares go on sale tomorrow, driving stocks upwards, and forcing the company's market valuation skyward.
Aside from its dependence on a single company for a tenth of its revenue, Facebook has named a number of risks, and highlighted the problems posed by mobile to future ad revenue.
In addition, as more and more social media companies hit the books, and an increasing number of Americans (now over 50 percent) believe Facebook is a "fad".
Forbes cites this as one of many reasons investors should be cautious of the IPO, after GM reportedly pulled $10 million in advertising from the company.
Despite concerns, tomorrow is expected to be a landmark day for the world's largest social media provider, with lasting consequences for all who use the platform, developers and consumers alike.