Insider reveals Facebook's $3.5bn cash hoard

By Lee Kaelin on December 16, 2011, 8:30 AM

Facebook is sitting on a massive $3.5bn in cash according to a well-placed mole's leaked figures, revealing that the social networking giant is earning considerably more money than first believed.

According to the internal figures that were leaked by Gawker, the social network had operating revenues of $2.5bn between January and September of this year. The company's assets currently sit at $5.6bn, including a frankly enormous $3.5bn in cash. Facebook also looks set to hit the $1bn mark in profits this year, with recorded figures of $714m between January and September. Clearly, Mark Zuckerberg's outfit is making considerable profits despite increased competition from the likes of Google.

Rumors have been flying around for a while suggesting the firm is planning an IPO as early as next year, considered to be the biggest public offering since Google joined the stock market in 2004 (bar today's Zynga offering). Initially the offering was estimated in the region of $70bn, but the Wall Street Journal recently reported they are expecting it to be closer to $100bn. At that price, Zuckerberg can look forward to his 24 percent stake jumping its value to an overwhelming $24bn.

In September, Reuters reported that Facebook's revenues had doubled from the previous year's figures to $1.6bn in the first six months of 2011. In 2010, the firm had revenues of $1.2bn in the first nine months of 2010. Of that, $355m was net income, according to the Guardian.

So if the latest figures are correct, it would show the social giant is still rapidly growing despite increased competition and the recently highlighted privacy concerns. Facebook officials have unfortunately refused to comment on financials for the company.

Yesterday Facebook introduced its new timeline feature, to a mixed response from the public. Billed by the site as being a story of your life, it will stretch back as long as you have been a member and display life events and other updates in a chronological order. The new feature is available to all 800 million users on an opt-in basis.




User Comments: 13

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VitalyT VitalyT said:

So what? - Looking at other people's money doesn't give me a boner.

Burty117 Burty117, TechSpot Chancellor, said:

I really hope it doesn't give anyone a boner.

However, it is interesting how much money they make simply by allowing us to talk to each other.

Guest said:

I still don't have a Facebook account nor do I ever plan to get one.

Mindwraith said:

Guest said:

I still don't have a Facebook account nor do I ever plan to get one.

i don't understand why people always find that worthy of stating

tehbanz tehbanz said:

burty117 said:

I really hope it doesn't give anyone a boner.

3.5bn, I have the weirdest boner right now.

Burty117 Burty117, TechSpot Chancellor, said:

tehbanz said:

burty117 said:

I really hope it doesn't give anyone a boner.

3.5bn, I have the weirdest boner right now.

oow dear, I really hope your not at work right now. How the hell are ya gunna explain that one?!

Guest said:

Facebook has been spying on us forever now, it doesn't bother me as I have nothing to hide...

caravel said:

Fat cat corporation amasses billions by preying on the abject stupidity, banality, low self esteem, vanity and neediness of the plebs, while 99% of the world lives below the poverty line - tell me something new? It shows that we live in a world owned and run by a minority for a minority, but I knew that as well. So....

Mindwraith said:

caravel said:

Fat cat corporation amasses billions by preying on the abject stupidity, banality, low self esteem, vanity and neediness of the plebs, while 99% of the world lives below the poverty line - tell me something new? It shows that we live in a world owned and run by a minority for a minority, but I knew that as well. So....

its not really 'preying' on them if it's not taking anything from them. facebook is a free tool and people use it willingly.

RH00D RH00D said:

caravel said:

Fat cat corporation amasses billions by preying on the abject stupidity, banality, low self esteem, vanity and neediness of the plebs, while 99% of the world lives below the poverty line - tell me something new? It shows that we live in a world owned and run by a minority for a minority, but I knew that as well. So....

But... But caravel! Facebook is developed 100% with open source tools! Doesn't that mean you should be praising them left and right?

DokkRokken said:

caravel said:

Fat cat corporation amasses billions by preying on the abject stupidity, banality, low self esteem, vanity and neediness of the plebs, while 99% of the world lives below the poverty line - tell me something new? It shows that we live in a world owned and run by a minority for a minority, but I knew that as well. So....

And you got this all from a tool to stay in touch with long-lost friends and business contacts?

oranuro said:

How does Facebook monetize people who talk to each other? I don't use the service but was under the impression there was no advertising backing the service.

dividebyzero dividebyzero, trainee n00b, said:

Fat cat corporation amasses billions by preying on the abject stupidity, banality, low self esteem, vanity and neediness of the plebs, while 99% of the world lives below the poverty line - tell me something new? It shows that we live in a world owned and run by a minority for a minority, but I knew that as well. So....

There's are worse things to rail about than the human race's need for a sense of belonging. In a world where designer firewood has a place, you may as well accept the inevitable.

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