Facebook IPO May Be Worth $2.45 Billion to the State of California

You know who is happy about Facebook's IPO, aside from its investors and fanboys? The state of California. The Golden State has been plagued by bad news about its budget, but a new estimate from the state of California's Legislative Analyst's Office suggests that the Palo Alto company's move to public markets could drop an extra $2.5 billion into the state's coffers, including a whopping $1.5 billion in 2012-2013.

The LAO made sure to caveat its estimate with all detailed notations of the uncertainties in their model. "As we discussed in the Overview of the Governor's Budget, the Facebook impact on state revenues cannot be predicted in advance and will never be known retrospectively with any degree of precision," they wrote. "Yet, given that an IPO clearly would benefit state revenues, we believe it is appropriate for policymakers to incorporate this into their budgetary discussions."

Even if it will be hard to quantify the impact of a Facebook IPO, the bottom line is clear to the LAO: Facebook going public will be great for a state that needs to close a multi-billion dollar budget gap over the next couple of years.

Facebook-related-revs_615.jpg
Presented by

What LBJ Really Said About Selma

"It's outrageous what's on TV. It looks like that man is in charge of the country."

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

What LBJ Really Said About Selma

"It's going to go from bad to worse."

Video

Does This Child Need Marijuana?

Inside a family's fight to use marijuana oils to treat epilepsy

Video

A Miniature 1950s Utopia

A reclusive artist built this idealized suburb to grapple with his painful childhood memories.

Video

Why Principals Matter

Nadia Lopez didn't think anybody cared about her school. Then the Internet heard her story.

More in Technology

Just In