With millions in the bank from a recent investment by DST and a cash-flow positive business, Facebook has no plans to go public in 2010. That’s the latest information from Facebook investor and board member, Jim Breyer, who was speaking at the DLD Conference in Munich Germany. Highlighted by Johannes Kleske of the conference, Breyer stated “We are not planning a near term IPO (near term as in 2010)”. Yuri Milner of DST followed on with, “We have permanent capital, we don’t have to return money to investors so we can go long term. So we’re not planning our exit”.
While many individuals were expecting the company to go public later this year, the new DST investments have helped “tide” the company over. Zynga, the largest developer on the Facebook Platform, also accepted a large investment ($180 million) from DST earlier this year, which means both companies don’t have an immediate need for going public.
This new investment model, which is being called “DST deals“, is enabling internet technology companies to mature further before going public. Not to mention that many investors may not understand Facebook’s virtual goods business model, which will become more significant over the coming months. Another interesting tidbit mentioned during the conference was Jim Breyer’s statement that he “doesn’t believe that Facebook or any other social network will approach Google’s efficiency when it comes to advertising.”
So for those of you who were looking to get invested in Facebook this year, it appears as though you’ll have to look to third party sellers through services like SecondMarket and private Facebook investment funds.
Breyer & Milner comments were first spotted by Rafat Ali.