Facebook files to raise $5B in initial public offering

Facebook filed to raise up to $5 billion in a highly anticipated public offering today. The company revealed that its annual revenues were $3.71 billion in 2011, with net income of $1.002 billion.

Advertising accounted for 85 percent of revenue. The remainder comes from fees and payments or transactions through Facebook Credits, the company’s now mandatory virtual currency. Facebook doesn’t say much about how it plans to spend the funds other than saying it may go toward acquisitions of other businesses or assets. To that end, Facebook actually already has more than $3.9 billion in cash and marketable securities.

Saturday marks the eight-year anniversary of the site’s launch. The company has grown to attract 845 million monthly active users, including 425 million mobile monthly active users. The company identified mobile growth, competing products, dependency on Zynga, government censorship and negative media coverage among the challenges it faces moving forward.

Founder and CEO Mark Zuckerberg explained in a letter to investors that Facebook was not originally created to be a company, but to “accomplish a social mission.” He writes, “People sharing more — even if just with their close friends or families — creates a more open culture and leads to a better understanding of the lives and perspectives of others [...] We think a more open and connected world will help create a stronger economy with more authentic businesses that build better products and services.”

As we previously reported, the social network chose Morgan Stanley as the lead underwriter. Goldman Sachs, JP Morgan, Barclays Capital, Bank of America Merrill Lynch and Allan & Co. are also participating in the sale. It may be several months before Facebook debuts on the public market depending on broad market conditions and how company executives manage the Securities and Exchange Commission’s mandatory “quiet period.” The company cannot make any statements that might artificially inflate the value of its stock.

The filing comes at a critical time for Facebook. Private companies with 500 or more investors must legally make their financial records public within 120 days after the end of that calendar year. The social network did not have to make a public offering, but like Google which was in a similar position, it decided to go forward with an IPO anyway.

Sponsored Post

Hands-On Social Media Training for Beginners


Social Media 101
In our Social Media 101 boot camp, you’ll determine the social media sites that matter most to you, based on personal and professional goals. Starting May 13, you will learn the best practices for using Facebook, Twitter, LinkedIn, Google+, Pinterest, Instagram and Tumblr, along with complete personal profiles on each site. Register today!

Leave a Reply

One Response to “Facebook files to raise $5B in initial public offering”

  1. Facebook Files $5 Billion IPO | One Blue Stocking says:

    [...] Facebook files to raise $5B in initial public offering [...]

interested in advertising with inside facebook?

Social Media Jobs
of the Day

Social Media Graphic Designer

Constellation Brands
San Francisco, CA

Digital Content Coordinator

Midan Marketing
Statesville, NC

Digital Marketing Assistant

Atlanta Magazine
Atlanta, GA

Communications Program Manager

Virgin Atlantic Airways
Norwalk, CT

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More
 

Our Sponsors

Also from Inside Network:   AppData - Facebook & iOS Application Stats   PageData - Engagement Data on Facebook Pages   Facebook Marketing Bible   Inside Network Research
 
home | site map | advertising/sponsorships | about | careers | contact us | help courses | browse jobs | freelancers | events | forums | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us