7 May 2012

Facebook IPO not without its challenges

12:27 pm on 7 May 2012

Facebook is preparing for its market debut in around two weeks with the largest-ever initial public offering for an internet firm, but analysts say it faces a number of challenges.

The company has set the share price for its IPO at about $US35per share, valuing the company at up to $US96 billion, much more than Google's valuation of $US23 billion in 2004.

Facebook is to list on the Nasdaq and would rival the current market values of Amazon and Cisco Systems.

CNN's Silicon Valley correspondent says Facebook founder Mark Zuckerberg is selling some of his stake to pay a $US200 million tax bill in California and $US700 million to the federal tax agency, the IRS.