FACEBOOK increased the size of its initial public offering by almost 25pc and could raise as much as $16bn (€12.5bn) as strong investor demand for a share of the top-rated social network trumps debate about its long-term potential to make money.
Facebook, founded eight years ago by Mark Zuckerberg in a Harvard University dormitory, said yesterday it will add about 84m shares to its IPO, floating about 421m shares in an offering expected to be priced today.
The company itself has not increased the number of shares it will sell.
The news came as General Motors said it will stop advertising on the social network site.
"Currently we have no plans to continue advertising with Facebook," GM spokesman Greg Martin said. "We regularly review our overall media spend and make adjustments as needed.
"This happens as a regular course of business and it's not unusual for us to move our spending around various media outlets."
Outside of Facebook, General Motors spent $1.78bn (€1.39bn) on advertising in the US last year. Only AT&T and Procter & Gamble spent more. Facebook said last week that growth in advertising sales isn't keeping pace with gains in users.