Mendoza School of Business

Patience Pays Off for Zuck, Facebook

Published: January 30, 2012 / Author: Matt Egan

By resisting pressure to cash in and go public years ago, Facebook CEO Mark Zuckerberg likely enhanced his personal wealth and that of his early investors dramatically.

That’s because Facebook is now eyeing a gigantic IPO in a relatively calmer market environment and as a far stronger company, enabling it to garner a valuation that would have been unthinkable just years earlier.

“They are one of the largest tech companies in the world. I think it’s great timing,” said Tim Loughran, a finance professor at the University of Notre Dame. “It’s just brilliant from their standpoint.”

According to published reports, Facebook may file documents as early as Wednesday for a $10 billion IPO — the fourth-largest IPO in U.S. history and biggest U.S. Internet debut ever. The social network is reportedly targeting an eye-popping valuation of $75 billion to $100 billion, compared with eBay’s $40 billion market cap. 

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Topics: Mendoza