Facebook finally files long-rumored $5 billion IPO

By on February 1, 2012, 7:17 PM

As expected, Facebook's initial public offering hit the Securities and Exchange Commission Wednesday, raising $5 billion -- less than the $10 billion previously speculated. The long-rumored move reached relative certainty last Friday when the Wall Street Journal reported the IPO would occur this week.

In its S-1 filing, the company said it'd start selling public stock as soon as possible. It also shared a handful of stats about the social network, which now has 845 million active users a month, 100 billion friendships, 2.7 billion likes and comments a day, as well as 250 million photos uploaded each day.

The form also revealed that the service has been profitable for three years with revenue of $777 million on profit of $229 million in 2009. Revenue grew 154% to $1.974 billion in 2010 and another 88% to $3.711 billion in 2011. Facebook earned some $1 billion last year and its sitting on $3.908 billion in cash.

CEO Mark Zuckerberg earned a salary of $483,333 in 2011 with a $220,500 bonus for the first half of the year and $783,529 in other compensations (some $692,679 of it was for chartered airplanes). This pay "reflected the impact of his performance in leading our product development efforts, our success in growing Facebook's global user base and developing strong developer and commercial relationships," the document reads.

Other executives, including Sheryl Sandberg, David Ebersman, Mike Schroepfer and Theodore Ullyot received base salaries of $275,000 to $300,000 in 2011, but received far greater total sums via stock awards. For instance, Zuckerberg's compensation totaled $1.48 million in 2011, while Sandberg's was over $30.87 million with stock factored in. The others received between $6.9 million and $24 million in total compensation.




User Comments: 12

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RH00D RH00D said:

A public Facebook = a dead Facebook.

Guest said:

I agree with the guy that says a public Facebook is a dead Facebook.

But whats really going to kill Facebook is the "Timeline". I avoid going to my friends pages that have it, and many of them say it was a mistake switching over (oddly some really love it). Anyway, once its forced onto me I will be deleting my Facebook.

davislane1 davislane1 said:

I've already decided to close my Facebook account at the end of the month. Been considering it for a while, but the imminent Timeline mandate sealed the deal.

To me, it looks as if Facebook is going down the exact same road that MySpace went down: initially it was neat, tidy & got the job done, and then it turned into a convoluted mess with people coding their pages & the company trying to cram too many features into their service. If the evolution of Facebook over the last 3 years isn't the same departure from streamlined simplicity into over-thought gimmickry, I'll be a billionaire by year's end.

As for the IPO... This has all the smells & sounds of a bubble. The stock will certainly have upward momentum out of the gate, but as soon as the hype dies off and all of the major holders cash in their positions its going to be short city, similar to what happened with the LinkedIn. Whoever gets stuck on the long side of this is going to get cleaned out.

RzmmDX said:

I am not even sure what will Facebook do with 5 billion... take over a country and build the world's largest data center?

fimbles fimbles said:

Selling your own information back to you......

slh28 slh28, TechSpot Paladin, said:

I honestly don't get why people are kicking up a massive fuss about the Timeline, I for one think it's quite a nice feature. Same thing when the news feed came along, people threatened to quit and now it's an essential feature.

Guest said:

Personally, I'm closing my facebook account and moving to Google+. Privacy is a lot better, the company doesnt purely rely on ads for income (so in my eyes is more stable and doesnt fill my screen with rubbish), and in general I trust google a lot more with my data (most of which they already hold through other services anyway.

That said, I've never been a fan of facebook anyway as I totally disagree with Mr Zuckerburg's professional ethics, and will be glad to be away from it.

mario mario, Ex-TS Developer, said:

Google's main revenue is advertising, and by a landslide ( http://investor.google.com/financial/tables.html ) the percentage is bigger than Facebook's. Google's privacy has gotten so convoluted with their recent changes and Google+ integration that even Microsoft will run a campaign outlining Google's new privacy mess ( [link] ).

Remember Google is an advertising company and their main source of income is selling your data to their clients, just like Facebook does.

Facebook's filing for their IPO actually shows that they are a very serious company with great profits and changes like their new Timeline feature show that they are not afraid of innovation. Their solid finances show no sign of being a bubble. And I'll even go as far as saying that in 5 year Facebook will be even a bigger player on the Internet and who know maybe they'll go into the hardware business with tablets and smartphones.

And if you are worried about privacy please opt-out of personal tracking here: http://www.google.com/ads/preferences/?hl=en and [link]

Personally I use Facebook's and Google's services, I'm just not sold on their "Don't be evil" motto anymore and neither should you.

Cellar said:

Wonder whats going to change now that Facebook has all that dough...

RH00D RH00D said:

mario said:

Google's main revenue is advertising, and by a landslide ( http://investor.google.com/financial/tables.html ) the percentage is bigger than Facebook's. Google's privacy has gotten so convoluted with their recent changes and Google+ integration that even Microsoft will run a campaign outlining Google's new privacy mess ( [link] ).

Remember Google is an advertising company and their main source of income is selling your data to their clients, just like Facebook does.

Facebook's filing for their IPO actually shows that they are a very serious company with great profits and changes like their new Timeline feature show that they are not afraid of innovation. Their solid finances show no sign of being a bubble. And I'll even go as far as saying that in 5 year Facebook will be even a bigger player on the Internet and who know maybe they'll go into the hardware business with tablets and smartphones.

And if you are worried about privacy please opt-out of personal tracking here: http://www.google.com/ads/preferences/?hl=en and [link]

Personally I use Facebook's and Google's services, I'm just not sold on their "Don't be evil" motto anymore and neither should you.

For this post, you've been awarded +3 Internets.

Guest said:

I cancelled my Facebook last month as i distrust their use of data and who they offer it to. and I haven't looked back

tengeta tengeta said:

Guest said:

I cancelled my Facebook last month as i distrust their use of data and who they offer it to. and I haven't looked back

They keep your data, its the general public that can't see it... How do people not know this yet?

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