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Summary:

Two of Facebook’s venture capital investors told the DTD conference in Germany that the social network has no plans to go public in the near term — meaning 2010 — that the company is instead still investing in and building its business.

Facebook, according to comments made by two of the social networking company’s financial backers at the DTD conference in Germany (reported in a live-blog of the conference as well as by Rafat Ali of paidContent on his Twitter stream), is not planning an IPO this year. “I am happy to announce that there will be no near-term IPO on Facebook — this means 2010,” Jim Breyer of Accel Partners reportedly told the conference, adding that “for them, it is all about getting the product and team right.” Facebook investor Yuri Milner of Russia’s Digital Sky Technologies, meanwhile, was quoted as saying: “We have permanent capital, we don’t have to return money to investors, so we have unlimited patience.” Milner has expressed similar sentiments in the past.

Such a sentiment is likely to come as a disappointment to many in the investment markets, since a Facebook IPO would have been a nice boost for the somewhat moribund initial public offering market. A share issue by the social network could be worth upwards of $10 billion, depending on whose valuation methods you decide to use (some are as high as $14 billion). There also seems to be some debate among investment industry observers about whether the IPO market is coming back any time soon.

An IPO by Facebook is viewed by many as the most hotly-awaited technology stock offering since Google went public in 2004, and there have been signs that the social network is at least considering a public share issue, including a restructuring of the company’s capital structure to create two classes of stock, something that is often a prelude to an IPO. However, at the time it made the changes, Facebook made a point of saying that the move should not be “construed as a signal the company is planning to go public,” and that it “has no plans to go public at this time.”

  1. I was looking forward to Facebook’s IPO this year. Guess I will have to put my money to work in another stock. Honestly though do they really need the public’s money?

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  2. People should first worry about FB non-existent business model.

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  3. [...] apparently wants another year of growth before going public. Facebook, initially was rumored to be going public in 2010 and then in 2011. The draconian procedures and bureaucratic migraines that come with going public [...]

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  4. [...] director Peter Thiel says don’t count on it up until 2012. He only reaffirmed what Facebook has been saying all along — no plans for an IPO anytime soon. At an event today, he pointed out that the company is [...]

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  5. [...] to buy publicly-traded shares that have some connection with those companies, as the market waits with bated breath breath for a much-anticipated Facebook initial [...]

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