Facebook launches $5bn IPO

Facebook is in the process of filing papers for a $5 billion (£3.2 billion) initial public offering, which will give investors a chance to put their private wealth in the company once it debuts on the stock market.

According to trading on the secondary market, the highly successful social media site is currently valued at approximately $80 billion (£50.5 billion), with chief executive Mark Zuckerberg's share valued at $22.7 billion.

However, the Financial Times said investors that Mr Zuckerberg will retain tight control over the business once it is on the stock exchange, which may put off some investors.

In the filing he is reported to have confirmed that he intends to carry on running Facebook primarily as a public service, rather than a money making venture.

"Facebook exists to make the world more open and connected and not just to build a company," he wrote in a letter to investors accompanying the filing.

"Simply put: we don't build services to make money: we make money to build better services."

Mr Zuckerberg believes that such an approach will help to ensure that the relationship between businesses and governments and everyday people remains as honest as possible.

Facebook made revenues of $3.7 billion in 2011 and has at present some 845 million users.

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