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Facebook Expands IPO, Could Raise $16B

Stock offering may become third largest in US history
By Rob Quinn,  Newser Staff
Posted May 16, 2012 2:50 AM CDT
Updated May 16, 2012 4:30 AM CDT

(Newser) – Facebook's behemoth of an IPO is getting even bigger. After raising its price range, the company has now decided to expand the size of the stock offering by 25% to 422 million shares, sources tell Reuters. The IPO could now raise as much as $16 billion—dwarfing Google's $2 billion IPO in 2004—and become the third-largest initial stock offering in American history, after Visa and General Motors. The stock goes public Friday.

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The price hike helped raise other tech stock yesterday, although doubts remain about the company's long-term money-making potential—especially in light of GM's decision to stop running ads on the site. "This is much more a spectacle, a media event and a cultural moment than it is an IPO," says an analyst at GreenCrest Capital. "This is not a game of models and fundamentals at this point." (Read more NASDAQ stories.)

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