Facebook IPO

obeygiant

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Facebook Inc. could file papers for its initial public offering as early as this coming week, people familiar with the matter said, as anticipation mounts for what is likely to be one of the biggest debuts for a U.S. company.

The deal, seen as defining moment for the latest Web investing boom, could raise as much as $10 billion and value the social network between $75 billion and $100 billion, said people familiar with the matter. A valuation of $75 billion would be below earlier expectations.

The website, which in less than eight years has attracted more than 800 million members, has changed the way people across the globe communicate, from organizing political protests to sharing baby pictures.

Facebook could file documents with the Securities and Exchange Commission as early as this coming Wednesday, said one person familiar with the matter. But that timing is just one scenario Facebook executives are considering, the person said. Executives are also considering filing a few weeks later, the person said.

People familiar with the matter have said the company is targeting an IPO sometime between April and June.

A $10 billion Facebook offering would rank fourth among IPOs for U.S. companies, behind Visa Inc., General Motors Co. and AT&T Wireless, according to Dealogic. It would rank Facebook as the biggest U.S. Internet offering ever, replacing Google Inc., which raised $1.9 billion in 2004 at a $23 billion valuation.

At a $100 billion valuation, Facebook would be worth about the same as McDonald's Corp. and nearly half of Google.

Facebook's revenue is driven by its advertising business, as big brands rush to the site to interact with consumers through display ads and fan pages. Facebook has been able to increase its world-wide advertising revenue from $738 million in 2009 to $3.8 billion in 2011, according to estimates from research firm eMarketer. It isn't known if Facebook is profitable.
wsj

I made some money with the VISA IPO a little while ago. I'm certainly going to buy in this time.
 

AbyssImpact

macrumors 6502a
Aug 6, 2010
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After seeing groupon start off strong, I purchased Zynga at the initial opening at $11 a share. What a mistake. Hopefully Facebook won't be the same.
 

MacNut

macrumors Core
Jan 4, 2002
22,038
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CT
So will the IPO be invite only or will anyone be able to get in on it?
 

rdowns

macrumors Penryn
Jul 11, 2003
27,397
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So will the IPO be invite only or will anyone be able to get in on it?

Individual, retail investors never get a crack at IPOs. By the time you or me can buy the stock, the initial jump will have happened. I might still buy if the initial bump isn't too big. I am hesitant of a company that is going to be valued at $75-100 billion whose revenue is $4 billion, primarily from ads. Contrast that with Google's $40 billion in revenue from ads.
 

rhett7660

macrumors G5
Jan 9, 2008
12,507
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Sunny, Southern California
Individual, retail investors never get a crack at IPOs. By the time you or me can buy the stock, the initial jump will have happened. I might still buy if the initial bump isn't too big. I am hesitant of a company that is going to be valued at $75-100 billion whose revenue is $4 billion, primarily from ads. Contrast that with Google's $40 billion in revenue from ads.
For the most part that is true, however Google actually opened it up to individual investors from day one. I believe it was $80-90 dollars a share.
 

rdowns

macrumors Penryn
Jul 11, 2003
27,397
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For the most part that is true, however Google actually opened it up to individual investors from day one. I believe it was $80-90 dollars a share.
True and I read Facebook may do this with a small amount of shares relative to the offering. I still stand by my statement that the retail investor generally can't get in on IPOs.
 

rhett7660

macrumors G5
Jan 9, 2008
12,507
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Sunny, Southern California
True and I read Facebook may do this with a small amount of shares relative to the offering. I still stand by my statement that the retail investor generally can't get in on IPOs.
You are correct, I was just pointing out that some, not so connected in the investment community, were able to purchase shares... :)

I hope FB does do this too, I will jump on it!
 

bradl

macrumors 601
Jun 16, 2008
4,022
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For the most part that is true, however Google actually opened it up to individual investors from day one. I believe it was $80-90 dollars a share.
Not really, IIRC..

Didn't Google have a Dutch Auction of their slots for the IPO? You basically had to bid for a spot in the IPO to participate in it, and most of that was done overseas first. By the time the IPO hit, shares were already high.

If FB follows this, it will be hard for the individual investor to get in on it unless they already have the money to get in on the auction, or sell off some shares of something else to get the money to get in. If FB does traditional IPO, then it's fair game for everyone.

BL.
 

obeygiant

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For the Visa IPO there were a handful of people who had lots of shares and sold them to the public on the day it opened, those people made a lot of money. I bought shares at opening at about $58. However there was so much selling going on the shares fell to about $54 per share. It was only later that they rose to $90 (and then fell to $44 then went back to $90 then went back to $50 and now is about $100).

So my advice is that if you can't wait buy a few a opening and see if he price fluctuates, then buy more when the price even out a little. IMO.
 

Liquorpuki

macrumors 68020
Jun 18, 2009
2,286
8
City of Angels
After seeing groupon start off strong, I purchased Zynga at the initial opening at $11 a share. What a mistake. Hopefully Facebook won't be the same.
Zynga will probably shoot up if the FB IPO does well though

Regardless, I think Zynga is a crap company that will tank in the long run
 

basesloaded190

macrumors 68030
Oct 16, 2007
2,693
5
Wisconsin
I don't see facebook being the next google. This will be a hot stock for a while and probabaly over priced, but I am very interested to see what happens.
 

stridemat

Moderator
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Apr 2, 2008
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Old Zuckerberg also owns just over 28% of the company. Someone is in for a bit if a windfall.
 

AbyssImpact

macrumors 6502a
Aug 6, 2010
799
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Old Zuckerberg also owns just over 28% of the company. Someone is in for a bit if a windfall.
27 ain't that old.

Wow I never realized Zynga makes up 12% of Facebook's total revenue. I guess if Facebook soars, so will Zynga. If Facebook tanks, so will Zynga.
 

rhett7660

macrumors G5
Jan 9, 2008
12,507
2,468
Sunny, Southern California
Not really, IIRC..

Didn't Google have a Dutch Auction of their slots for the IPO? You basically had to bid for a spot in the IPO to participate in it, and most of that was done overseas first. By the time the IPO hit, shares were already high.

If FB follows this, it will be hard for the individual investor to get in on it unless they already have the money to get in on the auction, or sell off some shares of something else to get the money to get in. If FB does traditional IPO, then it's fair game for everyone.

BL.
I think you are correct, however the shares were only in the 80's when I purchased them so there were not that high.

But yes you are correct about the Dutch Auction.......... At least you didn't have to use a broker.
 

Liquorpuki

macrumors 68020
Jun 18, 2009
2,286
8
City of Angels
Do you think it can go higher?
I think it'll go higher. FB hasn't even gone public yet. As long as there's no bad news regarding social gaming, mobile gaming, or FB, I believe the stock will rise.

But long term (> 2 years) I think the stock will tank. For one Zynga is creatively bankrupt - they're a gaming company that can't make a game without stealing. They're also sitting in a market (social games) where brand recognition holds little weight and there are only a few winners. I also believe once analysts see traditional gaming isn't dying out like they assumed was gonna happen, perceived value of social and mobile gaming companies will drop.
 

obeygiant

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Jan 14, 2002
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Facebook IPO Turns Graffiti Artist Into Multi-Millionaire

The decision seven years ago by a Korean-American muralist and graffiti artist to turn down thousands of dollars in cash for his work painting murals on the walls of Facebook’s first office in Palo Alto, Calif., has made him a very, very, rich man.

The artist, 35-year-old David Choe, gambled and instead took an equal value of shares of Facebook’s stock.

The social network, in one of the world’s most widely anticipated IPOs, or initial public offerings of stock, filed papers Wednesday to raise at least $5 billion.

As a result, Choe’s shares could be worth upward of $200 million when Facebook stock trades publicly later this year, the New York Times reported.

The story of Facebook was yet to be told back in 2005 when Choe was invited by the social network’s then-president, Sean Parker, to decorate the new corporate headquarters with his signature murals.

Choe, who now lives in Los Angeles, said he thought at the time that the idea of Facebook, famously founded in 2004 by Mark Zuckerberg in his Harvard University dorm room, was “ridiculous and pointless,” according to the Times.

Still, he accepted the job, and the stock.

Today, Facebook has more than 800 million active users who, Zuckerberg said, have made more than 100 billion connections with each other. In 2011, the site had profits of $1 billion on sales of $3.7 billion.

The Times calculated Choe’s estimated stock fallout based on the word of a former Facebook employee who said “advisers” to the company at that time, such as Choe, would have received about 0.1 to 0.25 percent of the company. That stake would be worth hundreds of millions of dollars, based on a market value of $100 billion.

While Facebook became a success, so did Choe, who has declined interview requests since the filing.

His work is sold for thousands of dollars, featured in gallery shows and exhibited in major museums.

In 2010, he released a self-titled book of his work, described as “funny, frantic and daredevil” in nature, and capturing, “the frenetic raw energy and gorgeous, intense work of gallery and street artist David Choe.”

Choe also created his own Facebook page that, today, has more than 6,000 subscribers, and a wall full of congratulations from his Facebook friends.

I'm actually happy for this guy. :)
 
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