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It's finally here, the Facebook IPO

Written by Andre Yoskowitz (Google+) @ 01 Feb 2012 20:32 User comments (3)

It's finally here, the Facebook IPO Facebook, the behemoth social network with over 850 million users around the globe has finally filed to go public.
The offering will be the largest ever, surpassing Google's in 2004. The company will go by the ticker "FB" later this year and the major banks Morgan Stanley, JP Morgan and Goldman Sachs are the underwriters.

In their S-1 document, the social network reveals it had revenue of $3.71 billion in 2011, up from $1.97 billion the year before. Net income was $1 billion, compared with $606 million the year before, making the site wildly profitable. However, using simple math, Facebook is averaging just over $1 profit per user, a very low number by any metric.

Social gaming giant Zynga "accounted for approximately 12 percent of its revenue in 2011," showing how strongly the gaming company's fate is tied to Facebook.

When the company goes public, it will raise $5 billion, with a company valuation over $75 billion. CEO and founder Mark Zuckerberg has a 28.4 percent stake in the company, making him one of the richest men in the world. The valuation will put Facebook squarely ahead of most major companies in the world.

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3 user comments

12.2.2012 2:16


Live Free or Die.
The rule above all the rules is: Survive !
Capitalism: Funnel most of the $$$ to the already rich.

22.2.2012 4:22

It's only going public so the people who have sued him for ownership, can't sue him for ownership anymore.

Very few people will ever get a look in to be able to get a share your probably looking at the $200 $300 range for 1 share and you probably need to buy 100 shares etc to make it worth while to a broker to do the trade.

Apple shares are $450 each at the moment, again the same problem.

32.2.2012 12:33

Historically Apple hit peaks and valleys in it's stock. I feel, while FB is the "in" thing, it will be replaced in the near (3-5 years) future by something better. Look at Yahoo, AOL, Netscape for stock performance to revelance and see the high Dollar per share opening fall way down.

I do give Apple credit in regaining the preimium price of it's stock from where it was in the 90s. Time will if FB can pull the trick off and stay on top.

This message has been edited since its posting. Latest edit was made on 02 Feb 2012 @ 12:35

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