Tagged: Facebook

Bloomberg took out its pencil, paper and calculator and came up with this number: $67 million.

That's how much the news service estimates Facebook co-founder Eduardo Saverin could save in federal income taxes after having renounced his United States citizenship in advance of social media company's public debut.

Bloomberg reports:

Facebook will be valued at about $100 billion when it goes public this week. What would it take for that valuation to be justified?

As we noted yesterday, the value of a typical big, public company is 15 times the company's annual profit. So a company valued at $30 billion would typically have annual profits of $2 billion.

Facebook will be valued at 100 times its current annual profits. That's because investors expect the company's profits to go through the roof in the coming years.

Good morning, here are some of the top stories we're looking at today:

Medical Report Details George Zimmerman's Injuries, ABC News Says.

Folks Seem To Like It, So Facebook Boosts Size Of Stock Offering By 25 Percent.

The hoopla continues over Facebook's initial public offering of stock, with word that the social media giant has increased the size of Friday's IPO by 25 percent.