Facebook has filled IPO (Initial Public Offering) of $5 Billion dollars with the Securities and Exchange commission (SEC). The SEC website went down with the Facebook IPO announcement.
The company is seeking to raise 5 Billion dollars through IPO. The complete IPO document can be seen here.
Facebook a tiny company which started in Feb 2004, has made a big mark now. Given below are some of the Facebook stats in the document for the IPO.
Risk Factors:
Facebook a tiny company which started in Feb 2004, has made a big mark now. Given below are some of the Facebook stats in the document for the IPO.
- Company made 3.7 Billion in revenue in 2011
- Advertising make 85% of revenue.
- Net Profit in 2011 : $1Billion
- Zuckerbergs base salary was $500,000 in 2011 which is more than triple the salary of Google co-founders Larry Page and Sergey Brin when Google filed for its IPO.
- Facebook COO Sheryl Sandberg enjoyed a base salary of $300,000 in 2011.
- Facebook now has 845million active users.
- Facebook makes 12% of its bottom line income from Zynga games.
- Zuckerberg set to make 28billion off of Facebook IPO.
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| Facebook finance 2009-2011 |
- Increased SmarPhone Users: Google ads are not shown on mobile phones and google makes 85% or its revenue from mobile phones.
- Competitors: Facebook competitors are Google+, Cyworld in korea, Mixi in Japa, Orkut in India and Brazil and VKontakte in Russia.
- Mark Xuckerberg is control to much of the Facebook i.e. 58% of the Facebook stock. so any wrong decision on his part could lead the company to disaster.
- Users fleeing the website: The less user visits the site the less profit FB makes.
- Design Changing too Much: Users never like changing the desigin of facebook so quickly. and this may result in not liking leaving Facebook.
