A current purchase spree by the social network giant, Facebook Inc may delay journey to its public markets by at least a week. Recently Facebook approved to acquire photo-sharing start-up Instagram for roughly $1 billion and the company said on Monday that it would pay $550 million to Microsoft Corp. for hundreds of patents.
The deals came just weeks ahead of Facebook’s entry into the final phases of the biggest ever Silicon Valley initial public offering. Facebook has been planning for an IPO during the first week of May, with a road show approximately two weeks before the debut on stock exchange.
The delay might be a cause to add one more twist to the high-profile public offering a day following the company announced quarterly results which show declining income as well as rising operating expenditures.
Source said that potential financiers will now have to wait at least a week longer to have a glimpse of Facebook’s road show, since the company will have to discuss the effect of its current purchases with the Securities and Exchange Commission.
Presently the SEC’s Corporate Finance department is assessing Facebook’s IPO filing and before Facebook can start selling shares, the regulator should declare that the document is effective.Previous Post » Major Falls of the Day: Wal Mart, Cisco and McDonald’s