After 11 years of bringing you local reporting, the team behind the Vancouver Observer has moved on to Canada's National Observer. You can follow Vancouver culture reporting over there from now on. Thank you for all your support over the years!

Facebook's $5 billion IPO: overhyped?

See video

"Facebook's IPO Will Be Way Overvalued" ; YouTube video by

At its highly anticipated Initial Public Offering (IPO) later this year, Facebook will be three times more expensive than Google. It could be one of the largest IPOs in history, financial analysts say.

The largest social network is expected to file plans with Securities and Exchange Commission (SEC) today and launch its IPO in four to five months.

While its price remains unknown, the IPO estimate valuation could be as much as $100 billion dollars, MarketWatch Columnist Mark Hulbert told The Wall Street Journal in the video. Facebook is expected to go for $5 billion to $10 billion through its IPO, initially.

That would rank the company just below McDonald's, which is currently at $101.5 billion, Howard Silverblatt at Standard & Poor's told USA Today.

Facebook will have to have the profit margin and/or revenue growth three times greater than Google's, says Hulbert, and, "Just asking for that is too much."

What's your opinion? Are people making too big a deal of Facebook? Is Facebook becoming more for investors rather than the users? 

More in TMI

The Real Housewives of Vancouver return for Season 2 with three new wives in the mix

Three new wives, sex addiction, a newly-constructed nose and hot drama on Season Two of The Real Housewives of Vancouver. Brace yourselves, ya'll.

What to say when you can't say "gay"

A few come backs as Tennessee's 'Don't Say Gay' bill comes out.

Shahrukh Khan, Sanjay Leela Bhansali, Poonam Pandey: the latest Bollywood gupshup

As Vancouver prepares to host the  Times of India film awards for some bangle-shaking fun at BC Place in April, we were curious as to what Shahrukh Khan, Deepika Padukone, Poonam Pandey and...
Speak up about this article on Facebook or Twitter. Do this by liking Vancouver Observer on Facebook or following us @Vanobserver on Twitter. We'd love to hear from you.