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Facebook page of company CEO Mark Zuckerberg - Source: ONE News -
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Facebook filed to raise a targeted $US5 billion in a hotly anticipated initial public offering today, setting the stage for Silicon Valley's largest-ever IPO.
The world's largest social network, a dorm room project for Harvard dropout Mark Zuckerberg that exploded in popularity and vaulted to Silicon Valley's top tier within 8 years, said in its preliminary filing that its net income rose 65% to $US1 billion in 2011, off revenue of $US3.71 billion.
The long-awaited submission kicks off a months-long process that will culminate in Silicon Valley's biggest coming-out party since the heyday of the dotcom boom and bust.
Facebook, which said it now has 845 million active users, appointed Morgan Stanley, Goldman Sachs and JPMorgan its lead underwriters. Other bookrunners included Bank of America Merrill Lynch, Barclays Capital and Allen & Co.
Facebook had previously been expected to raise $US10 billion in what would have been the fourth-largest IPO in US history, after Visa Inc, General Motors, and AT&T Wireless, according to Thomson Reuters data.
Facebook filed to raise a targeted $USUS5 billion in a hotly anticipated initial public offering today, setting the stage for Silicon Valley's largest-ever IPO.
The world's largest social network, a dorm room project for Harvard dropout Mark Zuckerberg that exploded in popularity and vaulted to Silicon Valley's top tier within 8 years, said in its preliminary filing that its net income rose 65% to $USUS1 billion in 2011, off revenue of $USUS3.71 billion.
The long-awaited submission kicks off a months-long process that will culminate in Silicon Valley's biggest coming-out party since the heyday of the dotcom boom and bust.
Facebook, which said it now has 845 million active users, appointed Morgan Stanley, Goldman Sachs and JPMorgan its lead underwriters. Other bookrunners included Bank of America Merrill Lynch, Barclays Capital and Allen & Co.
Facebook had previously been expected to raise $USUS10 billion in what would have been the fourth-largest IPO in US history, after Visa Inc, General Motors, and AT&T Wireless, according to Thomson Reuters data.
Zuckerberg's letter to investors
Facebook's Mark Zuckerberg attached a personal letter to his investors with company's IPO filing.
Zuckerberg wrote anyone who invests in Facebook should understand the social mission of the company - to make the world "more open and connected".
The letter stated getting everyone connected is a huge need and
opportunity to transform society for the future.
"By helping people form these connections, we hope to rewire the
way people spread and consume information," he said. "We have
already helped more than 800 million people map out more than 100
billion connections so far, and our goal is to help this rewiring
accelerate."
Facebook facts and secrets
2011 Revenue was $US3.711 billion vs. $US1.974 billion in
2011.
2011 net income (taxed): $US1 billion vs $US606 million in
2010.
Annual revenue grew 154% from 2009 to 2010 and 88% from 2010 to
2011.
Cash on hand: $US3.9 billion
Raising: $US5 billion
Ad revenue in 2011: $US3.2 billion over $US1.9 billion for 2010.
There was a 42% increase in ads delivered in 2011. There was an 18%
increase in price of ads 2011.
Revenue mix: 2011 85% was advertising. 2010 95% was advertising.
2009 100% advertising.
Payments revenue in 2011: $US557 million up from $US106 million in
2010.
Zynga is 12% of Facebook's business.
Facebook lists innovation from Google, Microsoft, and Twitter as
risk factors.
845 million users (monthly) 483 million daily - daily is up
43%.
More than 425 million mobile users in December.
Facebook mobile app is most downloaded app on all
smartphones.
Mark Zuckerberg owns 28.4% of Facebook. He's worth $US25bn+.
Dustin Moskovitz, cofounder, owns 7%.
Sheryl Sandberg owns just 2mm shares, .1% of the company. She has
another 4.7 mm shares she has not excercised yet. In total, her
exercised and not execised shares in the company are worth $US307
million.
Peter Thiel's stake is worth $US2.2 billion
Jim Breyer has a stake worth around $US10 billion.
Facebook facts and secrets
2011 Revenue was $US3.711 billion vs. $US1.974 billion in
2011.
2011 net income (taxed): $US1 billion vs $US606 million in
2010.
Annual revenue grew 154% from 2009 to 2010 and 88% from 2010 to
2011.
Cash on hand: $US3.9 billion
Ad revenue in 2011: $US3.2 billion over $US1.9 billion for 2010.
There was a 42% increase in ads delivered in 2011. There was an 18%
increase in price of ads 2011.
Revenue mix: 2011 85% was advertising. 2010 95% was advertising.
2009 100% advertising.
Payments revenue in 2011: $US557 million up from $US106 million in
2010.
Zynga is 12% of Facebook's business.
Facebook lists innovation from Google, Microsoft, and Twitter as
risk factors.
845 million users (monthly) 483 million daily - daily is up
43%.
More than 425 million mobile users in December.
Facebook mobile app is most downloaded app on all smartphones.
Share breakdown
Mark Zuckerberg owns 28.4% of Facebook. He's worth
$US25bn+.
Dustin Moskovitz, cofounder, owns 7%.
Sheryl Sandberg owns just 2mm shares, .1% of the company. She has
another 4.7 mm shares she has not excercised yet. In total, her
exercised and not execised shares in the company are worth $US307
million.
Peter Thiel's stake is worth $US2.2 billion
Jim Breyer has a stake worth around $US10 billion.
