What Will Facebook Do with All Its Cash?

[Commentary] What's Facebook going to do with all that money?

Depending on the price it sets for its shares, the company is on track to raise $6.1 billion to $6.8 billion in its initial public offering. Facebook's new wealth will be added to the $3.9 billion that's already in its coffers and will give the company one of the largest cash hoards of any nonbank public company. Because it's already profitable, Facebook doesn't need the new money. The company has talked only in broad terms about how it might use the cash, but analysts say it's likely to go on a buying, building and hiring binge to try to extend its dominance in social media. In recent regulatory documents filed with the Securities and Exchange Commission, Facebook said it is likely to use some new cash for working capital, the pocket money for corporations that's used to pay bills without having to dip into savings or sell off investments. Facebook said it also may use some to pay taxes, make investments or buy other businesses. "However, we do not currently have any specific uses of the net proceeds planned," Facebook said.