Facebook files for IPO. Facebook confirms plans to go public in deal that could rise Facebook’s value up to $100bn, Mark Zuckerberg’s stake will be round at $28bn.
New York / NationalTurk – With the Facebook initial public offering (IPO) now official, industry and financial analysts point out that a huge influx of cash could enable the social networking company to topple Google from its dominant position in the online world. Unseating Google would be no easy feat, though.
With an expected stock exchange valuation of $100 billion, financial analysts mark the IPO is worth about $5 billion. That’s a big potential troph for a company that has been fighting for social networking users and advertising dollars with the largest Internet company on Earth – Google. However the companies are not substitutes for each other. Google is the basis for most searches while Facebook is the basis for most social connections on Internet.
Facebook founder Mark Zuckerberg : ‘We don’t build services to make money; we make money to build better services’
Eight years after the young student Marc Zuckerberg launched Facebook from his Harvard dorm room, the 27-year-old on Wednesday announced he is selling shares in the social network at a price that values his creation at up to $100bn – and values his stake in the business at $28bn.
Facebook’s initial public offering (IPO) will top the biggest technology IPO since Google’s in 2004. It is estimated that nearly 1,000 current and former Facebook employees could become paper millionaires when the social network company goes public. The sale will define the future for the new wave of social media firms now joining the US stock exchanges. But Facebook’s estimated value is jawdropping.
Facebook IPO : Ceo Zuckerberg’s monthly salary will be 1 US dollar !
As a regulatory filing process amid IPO move, Facebook gave the most detailed look yet at company’s business module. Facebook had 845 million users worldwide at the end of December 2011 and 483 million people were using it every day. The company had revenues of $3.7bn in 2011, up from $1.97bn in 2010, and made a profit of $1bn, up from $606m in 2010. At June 2009 Facebook had ‘only’ 250 million users.
In a letter to potential Facebook shareholders, Marc Zuckerberg stressed: “We don’t build services to make money; we make money to build better services,”. “These days I think more and more people want to use services from companies that believe in something beyond simply maximizing profits.”
Zuckerberg added: “Facebook was not originally created to be a company. It was built to accomplish a social mission — to make the world more open and connected.”
Faceboo IPO regulatory filing to the Securities and Exchange Commission revealed that:
Facebook IPO : Facebook now has 845 million users, of which 483 million use Facebook daily.
Facebook IPO : Revenues in 2011 were $3.71bn – 88% higher than revenues in 2010.
Facebook IPO : Facebook made $1bn in profit last year – equivalent to $1.10 per user.
Facebook IPO : Mark Zuckerberg owns 28% of the company, which could be worth $28bn if the firm fetches $100bn valuation mark.
Facebook IPO : Zuckerberg will be paid $1 in salary starting 1 January 2013.
With a lot of new incoming cash, Facebook could make a lot of moves. Facebook which wasn’t a company at the very beginning would become an business empire like from an utopia. Facebook can consider buying the struggling Yahoo, one of the proginetors of Internet , or with a bolder move even Twitter.