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Facebook more valuable than Disney

By piranha

31st May 2012

Following the launch of Facebook on the New York Stock Exchange on the 18th May 2012, it has been revealed that it is the largest flotation in history achieved by an internet company with shares being priced at $38 (£24). It is also the third largest initial public offering (IPO) ever.

General Motors tops the list of the biggest floatations, raising $18.1bn in 2010, closely followed by a $17.9bn IPO raised in 2008 by Visa. Facebook, the world’s biggest social network has raised in excess of $16bn (£10bn) from investors.

Disney, Kraft and Mcdonald’s, along with other major blue chip companies, find themselves lagging behind now with the share price value of Facebook being $104bn (66bn).

82% of the social network’s total income is generated through advertising revenue but doubt has recently been cast by advertisers over Facebook’s ability to act as a successful revenue driver for them, compounded by the recent decision by General Motors, to pull all paid for advertising.

UK marketers are keen to see proof from the social network that their campaigns are providing a ROI before securing future advertising budgets.

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