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The Facebook IPO registration | Deal Insight

The information in this prospectus is not complete and may be changed. Neither we nor the selling stockholders may sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and neither we nor the selling stockholders are soliciting offers to buy these securities in any state where the offer or sale is not permitted

2011 Revenues: $3.71 bln (2010: $1.97bln)

2011 income: $1 bln (2010:$606 mln)

2011 Op Income: $1.955 bln

The “network” has not decided the exchange for the listing. FB is the symbol in either case.

* Zuck’s 28.4% stake or $28.4 bln worth currently gives him almost 80% voting power which will be reduced by converting some of his Class B shares into Class A voting shares but we know who’s in charge

The $5 bln filing is likely to be updated to a $10 bln value after document reviews and book making with investors. This is a preliminary prospectus.

Monthly Active users at 845 million and the 483 mln who log on daily are growing at a 39% and 48%   respectively Advertising is expected to continue as a major source of revenues ( 85% in 2011) Half of the monthly active users log on to facebook on mobile, where it relies on mobile OS for integration

Payments for virtual goods is quoted to a $15 bln market in 2014 from $ 7 bln in 2010. Zynga accounts for 12% of Facebook revenue. “We currently require Payments integration in games on Facebook, and we may seek to extend the use of Payments to other types of apps in the future.”

Facebook mobile currently does not support ads

A substantial portion of the offfering proceeds will be used to process deferred tax payments for selling shareholders including Zuckerberg’s exercise of 120mln outstanding options of Class B common stock(10 votes per share)

Post IPO: 117 mln Class A shares, 1759 mln Class B shares (10:1)


The company’s marketing expense has grown more than twice to $427 mln in 2011 and the Total Balance sheet of $6.3 bln includes $1.6 bln in retained earnings

Facebook spent $606 mln on data infrastructure in 2011 and expects to spend $1.8 bln on the same in 2012 incl Servers and construction of data centers

Netflix and WashPo counted amongst the biggest users of Facebook advertising at $3.8 mln and $4.2 mln

Profit Machine On Twitter, MG Siegler, a tech pundit, notes that Facebook has more profit than Google had revenue when it went public in 2004. Back then, he says, Google had $961.8 million in revenue and $105.6 million in profit, compared to Facebook’s $3.7 billion in revenue and $1 billion in profit. –– Jenna Wortham(FB:US)

Facebook’s 65 mln US users compare with an audience of 29 mln for American Idol series Finale and can be segmented by age, city, occupation and certain parameters valuable only to your brand


Latest SEC filing by Facebook for May 17 IPO

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One comment on “The Facebook IPO registration | Deal Insight

  1. Pingback: Can Facebook make mobile OS click in the bling? | Deal Insight | The Banking and Strategy Initiative

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