Facebook Has Big Plans for Its Big Cash - NBC Bay Area

The Silicon Valley giant launchces one of the biggest tech IPOs ever.

Facebook Has Big Plans for Its Big Cash

Analysts believe company will reinvest its cash infusion back into Facebook.



    (Published Sunday, May 20, 2012)

    Facebook is expected to end Friday with up to $18 billion in hand.

    So what will the Menlo Park-based social-networking site do with all that new found cash? A lot of what it has already been doing, according to experts.

    The company's shares are set to begin selling at $38 a piece around 8 a.m. Friday, which is expected to raise between $16 and $18 billion and give the company a valuation over $104 billion.

    The share price will give Facebook one of the largest cash reserves of any public company that is not a bank.

    Analysts believe Facebook will invest at least some of that cash back into the company by buying products, patents and other companies.

    Facebook started the shopping early.

    Earlier this month it purchased photo-sharing app Instagram for $1 billion. And it spent another $550 million last April to acquire patents from AOL.

    Analysts also believe the company will invest in hiring more people and identifying talent early -- in part to continue its social media dominance.