As expected, Facebook just filed its initial public offering paperwork with the Securities and Exchange Commission, marking the beginning of its process to become a publicly traded company. It'll trade under the stock symbol "FB" (although it didn't specify on what exchange) and says that it seeks to raise some $5 billion in the process. When the stock hits the open market, the company will be valued somewhere around $100 billion after you take into account the shares that existing investors already own.
Mark Zuckerberg himself has been revealed to own an astounding 28.4 percent of the company, which — if the $100 billion valuation is correct — would put his net worth near $30 billion. The filing notes that Zuck controls "a majority" of voting stock, which means he wields an extraordinary amount of power inside the company (not to say there was ever any doubt of that). He's got a base salary of $500,000, peanuts for a man who ranks as one of the wealthiest on the planet; COO Sheryl Sandberg clocks in at $300,000. As you can imagine, those figures don't tell the full story once you factor in stock benefits: Sandberg had total compensation last year of $30 million, Zuckerberg (a surprisingly low) $1.5 million. As of January of next year, Zuckerberg's annual salary will drop to just $1, a common practice among wealthy chief executives with a lot of skin in the game.
Now that these guys are going public, that means their earnings are public, too: the filing points to net income of $1 billion in 2011 on $3.7 billion revenue, up from $606 million in 2010. They're claiming some 845 million active monthly users, 483 million daily active users, and 100 billion friend connections — over 14 times the number of humans on the face of the planet. In the last quarter of 2011, the site averaged 250 million photo uploads per day; in December, it recorded 360 million people who logged in at least six out of seven days. Amazingly, a whopping 12 percent of Facebook's revenue presently comes from social gaming company Zynga alone, while mobile has yet to turn into a cash-making opportunity: "We currently do not show ads or directly generate any meaningful revenue from users accessing Facebook through our mobile products, but we believe that we may have potential future monetization opportunities such as the inclusion of sponsored stories in users' mobile News Feeds," the filing says.

There are 74 Comments. Add yours.
Now hopefully Facebook won’t turn into the next MySpace.
Posted on Feb 01, 2012 | 4:53 PM EST reply Recommend (5) Flag actions
or hopefully. I would hate for it to actually become the internet’s “ID”
Posted on Feb 01, 2012 | 4:53 PM EST reply Recommend (25) Flag actions
Thank You. It’s almost (or is) a “mini internet.” I compare it to that of the AOL/Compuserve days. You use their service for all your internet-related needs. Extreme example, I know; but Mark would LOVE that.
Posted on Feb 01, 2012 | 5:28 PM EST reply Recommend (1) Flag actions
Why the hate? If you don’t like it then don’t use it.
I don’t use it…
Posted on Feb 01, 2012 | 6:03 PM EST reply Recommend (4) Flag actions
I like it and use it, but don’t want it to become the Internet’s ID.
Posted on Feb 01, 2012 | 7:17 PM EST reply Recommend (3) Flag actions
Facebook’s position in the public eye and in terms of profitability is vastly different than Myspace’s was at the height of their success.
Posted on Feb 01, 2012 | 4:54 PM EST reply Recommend (3) Flag actions
They’ve been able to introduce the money making “features” whilst retaining users.
Posted on Feb 01, 2012 | 4:55 PM EST reply Recommend Flag actions
boom. roasted
Posted on Feb 01, 2012 | 4:53 PM EST reply Recommend Flag actions
Now where did I put my piggy bank?
Posted on Feb 01, 2012 | 4:53 PM EST reply Recommend Flag actions
get rich quick scheme. buy shares of a new IPO and sell them hours later.
Posted on Feb 01, 2012 | 4:55 PM EST reply Recommend Flag actions
Posted on Feb 01, 2012 | 4:59 PM EST reply Recommend (25) Flag actions
lol
Posted on Feb 01, 2012 | 5:00 PM EST reply Recommend (1) Flag actions
Perfect.
Posted on Feb 01, 2012 | 5:04 PM EST reply Recommend Flag actions
So many shares
Posted on Feb 01, 2012 | 5:05 PM EST reply Recommend Flag actions
I just laughed out loud like an idiot at work…
Posted on Feb 01, 2012 | 6:04 PM EST reply Recommend Flag actions
Well, more like a “If you are already rich enough that you can drop a not-insignificant amount of cash on an individual stock without worrying too much about the potential for loss, then you have a perhaps better-than-normal chance at converting that already not-insignificant amount of cash into another, greater not-insignificant amount of cash… scheme”
But yeah, I don’t know if I’ve ever met someone who is ‘into’ tech who doesn’t lament their theoretical “plan” to have bought Google, Apple, Amazon, Netflix…etc. but never did it, so, if you’ve ever been “That guy”, have the means, and tend to believe in what Facebook is doing, by all means try and get a piece of this.
Posted on Feb 01, 2012 | 5:06 PM EST reply Recommend Flag actions
Am I the only one who is absolutely uninterested in most everything Facebook does?
Posted on Feb 01, 2012 | 4:55 PM EST reply Recommend (5) Flag actions
No, you’re not. Although the news is relevant; you can’t argue with 800 million users and their revenue.
Posted on Feb 01, 2012 | 5:00 PM EST reply Recommend Flag actions
Is this why you came into a facebook related article and left a comment?
Posted on Feb 01, 2012 | 5:02 PM EST reply Recommend (26) Flag actions
Way to take it personally. I wasn’t trying to belittle Facebook’s and Zuckerberg’s success, which I admire greatly. I said that because most of everything Facebook does is generally on the least exciting side of tech news.
Posted on Feb 01, 2012 | 5:18 PM EST reply Recommend (3) Flag actions
I didn’t take it personally…but just pointing our the irony of making a comment on this article. Don’t be mad cause my recommend’s are stuntin’ on ya.
Posted on Feb 01, 2012 | 5:35 PM EST reply Recommend (2) Flag actions
ಠ_ಠ
Posted on Feb 01, 2012 | 5:50 PM EST reply Recommend (3) Flag actions
lol
Posted on Feb 01, 2012 | 8:24 PM EST reply Recommend Flag actions
Sorry buddy… but you are trolling…
So am I for posting this comment.. but whatever. Cops speed to catch up to speeders so……. so I guess that’s not the same thing. At all.
Posted on Feb 01, 2012 | 5:45 PM EST reply Recommend Flag actions
I hardly use FaceBook any more. Just putting it out there.
Posted on Feb 01, 2012 | 5:01 PM EST reply Recommend (1) Flag actions
Noted.
Posted on Feb 01, 2012 | 7:13 PM EST reply Recommend (1) Flag actions
_Posted on Feb 01, 2012 | 7:32 PM EST reply Recommend Flag actions
*Facebook
Posted on Feb 01, 2012 | 5:01 PM EST reply Recommend Flag actions
Wow, last time I checked (or heard) they had 500 million users. That’s huge.
Posted on Feb 01, 2012 | 5:05 PM EST reply Recommend Flag actions
Zuck’s salary will drop to $1 a year from Jan 2013.
Posted on Feb 01, 2012 | 5:06 PM EST reply Recommend (1) Flag actions
Yesssssssssssssssss !
Posted on Feb 01, 2012 | 5:09 PM EST reply Recommend (1) Flag actions
It’s not really surprising low. When you own 25% of a company, you shouldn’t be taking payment in stock or stock option. Larry Ellison set the bar for that at Oracle, award himself billions of dollars at shareholder’s expense in order to “align his interests” with the company. Just short of criminal, IMHO.
$1.5 million in total compensation seems about right for a guy that owns $30 Billion worth of its shares already.
Posted on Feb 01, 2012 | 5:13 PM EST reply Recommend (2) Flag actions
Zuck’s been planning this IPO since before Facebook even existed
Posted on Feb 01, 2012 | 5:13 PM EST reply Recommend (13) Flag actions
So is this gonna be expensive to get in on? I want a piece of the pie.
Posted on Feb 01, 2012 | 5:15 PM EST reply Recommend (1) Flag actions
Looks like you’ll have a hard time getting in on it http://www.thestreet.com/story/11394505/1/you-arent-getting-facebook-ipo-shares-so-when-should-you-buy.html
Posted on Feb 01, 2012 | 5:16 PM EST reply Recommend (1) Flag actions
As I suspected. Pipe dream…
Posted on Feb 01, 2012 | 5:20 PM EST reply Recommend Flag actions
When will we know the opening price?
Posted on Feb 01, 2012 | 5:16 PM EST reply Recommend Flag actions
Perfect timing, just got me a Scottrade Iphone app.
Posted on Feb 01, 2012 | 5:17 PM EST reply Recommend (3) Flag actions
I love this so much. Thank you.
Posted on Feb 01, 2012 | 5:50 PM EST reply Recommend Flag actions
With that kind of money they could actually pay Dr. Evil’s ransom of 100 billion dollars!
Posted on Feb 01, 2012 | 5:34 PM EST reply Recommend Flag actions
You know what’s cool?
5 Billion dollars.
Posted on Feb 01, 2012 | 5:46 PM EST reply Recommend (1) Flag actions
Where is that quote from again?
Posted on Feb 01, 2012 | 7:22 PM EST reply Recommend Flag actions
The Social Network.
http://youtu.be/4e0n7vTLz1U
Posted on Feb 01, 2012 | 9:38 PM EST reply Recommend (1) Flag actions
makes sense ;)
Posted on Feb 02, 2012 | 12:52 PM EST reply Recommend Flag actions
I think a real wildcard here is the fact that a growing number of users (in millions) hate Facebook. They hated recent changes. They hated being forced into using Timeline. They hate the ads being thrown into the Newsfeed. It’s just not fun anymore. And the revenue seemed low to me considering they supposedly have 800 million users. How much further can you grow? There are only so many people left on the planet. And how do they get to a $100 billion valuation. I don’t get that either.
I see future prospects of this company as very bleak.
http://mankabros.com/blogs/onmedea/2012/01/27/facebook-and-the-disappearing-valuation/
Posted on Feb 01, 2012 | 5:47 PM EST reply Recommend (3) Flag actions
People have hated every single change made to Facebook; it does nothing but grow in users.
Posted on Feb 01, 2012 | 6:16 PM EST reply Recommend Flag actions
Keep in mind that “active” could very well mean you were signed in to facebook last week and you’ve visited pages with “Like” buttons or used your FB account to sign in (like on this site).
Posted on Feb 01, 2012 | 6:24 PM EST reply Recommend (1) Flag actions
My understanding is that third-party sources who track data like active users do it based on the number of unique IPs calling certain URLs (like facebook.com*, etc.). I don’t think they track URLs that just call to the open graph or anything like that (though I could be very wrong on that). Facebook could be tracking it differently (and of course they have the info to be much more accurate), but in any event I don’t think they would want to cast a much broader net than the third-party methodology, as it would be misleading. Being misleading in SEC filings, particularly IPO filings, can quickly lead to huge liability for a company’s directors and the IPO underwriters.
Posted on Feb 02, 2012 | 4:08 AM EST reply Recommend Flag actions
When you connect to a site with facebook, you are reaching out to facebook.com’s oauth2 provider. Companies that track this sort of thing do so like you describe but wouldn’t be able to discern (unless filtered) whether or not you are using it.
Furthermore, if your phone has facebook enabled with push notifications, I’m going to go ahead and assume that there are at bare-minimum keep-alive requests made on a daily/hourly/whatever basis. That too could spike their numbers.
Posted on Feb 02, 2012 | 9:09 AM EST reply Recommend Flag actions
Deal or no deal?? The end of Facebook? Pockets are full?
Posted on Feb 01, 2012 | 5:53 PM EST reply Recommend Flag actions
" We don’t build services to make money" ???? This is so funny lollllll
Posted on Feb 01, 2012 | 5:55 PM EST reply Recommend Flag actions
Google’s valuation is under 200 Billion and they made roughly 10 times more in revenue / income than Facebook this year. They own Google Search, GMail, Youtube, G-Docs, Android, G-Maps, and a bunch of other successful online properties…
How on earth can Facebook justify such valuation..?
Posted on Feb 01, 2012 | 5:56 PM EST reply Recommend (1) Flag actions
Well, at the time of their IPO, Google basically only had Search. I think Gmail was in the wings, and they had a couple of other things cooking, sure. But their valuation, initially, was built primarily on having a ton of users on their search engine.
Facebook, I think, is similarly valued on the strength of having nearly a billion users and (it is assumed) every bit as much potential as Google had for expanding their revenue. Google leveraged their dominance in search to get into email, maps, videos, docs, mobile…etc. Facebook has a comparable dominance in Social Networking(at least comparable to 2004 Google had with Search), so who is to say what they might hope to do with it by 7 years from now.
Posted on Feb 01, 2012 | 6:57 PM EST reply Recommend Flag actions
Google’s market cap after the IPO was 23 billion. Now it’s only 188, so facebook coming out of the gate with a 100 billion valuation is nuts.
Posted on Feb 01, 2012 | 8:58 PM EST reply Recommend Flag actions
Not to mention the fact that when Google went public they were a young company with a lot of potential. Facebook, while it does still have potential, it is nowhere near the kinds of stratospheric levels these guys apparently think. In fact, once could argue that if a company hasn’t figure out a way to monetize their user base after this many year, that means they don’t really know how to do that and aren’t likely to do a good job at it when they do attempt something. I’m not going to go as far as predict that Facebook’s bubble is going to burst completely, but I’d be willing to bet that this time next year it’s gonna be a half, or less of current valuation.
Posted on Feb 02, 2012 | 12:47 AM EST reply Recommend Flag actions
This is a really hypocritical (pathetic) piece of writing. All you have to do is read what Zuckerberg thought of exploiting others in one of his unguarded moments..Just google "Zuckerberg privacy " to see the Wired article about this. From a gawker.com article on Z’ s hypocrisy: " .. Remember kids: Social networks are never, themselves, the real product—your private information is.".
Nothing compared to the usefulness of Google, Wikipedia or twitter (while it is still uncensored). But, hey, so many people do like to eat McDonald’s hamburgers, pink slime included, it does have such nice bright shops, and sugary foods.
Posted on Feb 01, 2012 | 6:11 PM EST reply Recommend (1) Flag actions
More Tweets than Likes.. Interesting.
Posted on Feb 01, 2012 | 6:11 PM EST reply Recommend (1) Flag actions
as if that guy hasn’t enough money already…a little more philanthropic work wouldn’t hurt mr.z
Posted on Feb 01, 2012 | 6:12 PM EST reply Recommend Flag actions
When they go public and are valued out at $100B I’m going to laugh my ass off at their investors. It’s things like their 12% reliance on zynga, a fad gaming platform, that’s really going to put "investors" in for a long ride down.
In order for FB to meet that $100B valuation mark, it’ll need to quadruple in size. Literally quadruple. Meanwhile Google won’t let go of wanting a piece of the social-networking pie. On top of that every time I get on, which is rare, there’s always less activity than previously. The posts I do see are often from the same Facebook addicts. Hell, my wife and pretty much all of her friends have lost interest in it.
I’m sure there were bears like this when Google released it’s IPO but it was in no where near as hyper-inflated like this. A lot of people with money don’t truly understand social networking. They see the power in it, but I think they also fail to see how overblown the hype is.
Posted on Feb 01, 2012 | 6:19 PM EST reply Recommend (1) Flag actions
I do not understand sometimes how this kinda thing works – how can a company with a revenue (not profit, revenue) of $3.7B can be valued at $100B, even taking growth into account. That is absurdly inflated. Given the history of the internet bubble and the current economic climate I would’ve expected a bit more level-headed thinking and conservative estimates from “the guessers”.
Posted on Feb 01, 2012 | 7:07 PM EST reply Recommend (1) Flag actions
If they were to sell the company, $100B would be a good price. It’s $3.7B a year, right? So if Facebook runs for several years, that’s a lot more revenue that can be generated, especially if revenue increases.
Posted on Feb 01, 2012 | 7:11 PM EST reply Recommend Flag actions
Well, remember too that it’s not as though any company that files for an IPO lives up to their expectations or suddenly winds up doubling their business and living happily ever after. If the $100B is ‘wrong’ by being too high, the market will correct for it, their stock value will plummet, people will point and laugh…etc.
Posted on Feb 01, 2012 | 7:36 PM EST reply Recommend Flag actions
Facebook as just a social network, doesn’t seem like it is, or should be, worth as much as people are hyping it up to be. But, you wonder if Facebook intends on becoming more than just a social network. Following Google’s template somewhat and branching out into as many directions as necessary to multiply the amount of ads they can show to the same(and greater) number of users.
It is not impossible to see Facebook becoming a more direct rival of Google. Given that both companies operate on advertising revenue primarily and both companies have a comparable weight of users and usage. Which is not to say Facebook is going to go ahead and make maps, docs, mobile OS…etc. But, Facebook isn’t likely to disappear any time soon either.
Posted on Feb 01, 2012 | 7:09 PM EST reply Recommend Flag actions
This is a common misconception. Facebook is a platform, which encompasses a social network, an app marketplace, and a payments infrastructure.
Posted on Feb 01, 2012 | 7:30 PM EST reply Recommend (2) Flag actions
Surprised the stock symbol isn’t FUU.
Posted on Feb 01, 2012 | 7:47 PM EST reply Recommend Flag actions
Facebook sucks go away boring ass people, like i care what you are doing.
Posted on Feb 01, 2012 | 8:07 PM EST via mobile reply Recommend Flag actions
Apple could almost buy Facebook.
Posted on Feb 01, 2012 | 8:53 PM EST reply Recommend Flag actions
Almost.. but who would loan Apple 2.4 Billion?
Almost.. but who would loan Apple 2.4 Billion?This is joke.
Posted on Feb 01, 2012 | 9:41 PM EST reply Recommend Flag actions
twice apparently.
Posted on Feb 01, 2012 | 9:41 PM EST reply Recommend (1) Flag actions
Apple will eventually earn their 2.4 more billion.
Posted on Feb 02, 2012 | 7:56 PM EST reply Recommend Flag actions
It’s funny how quickly people forget the recent past in many aspects of life. Here we have the next wave of the internet BUBBLE. $5 billion for a company THAT DOESN’T DO ANYTHING. THEY DON’T MAKE ANYTHING LOL! Am I the only sane person left? Just wait and watch the new bubble pop like the last one in the late 90’s. Facebook is NOT worth this kind of money. Most over valued company ever….
Posted on Feb 02, 2012 | 12:31 AM EST reply Recommend (2) Flag actions
I mean’t $100 billion.. damn no edit button. $100 billion for a simple website where people post nonsense all day to each other, and you see ads. Wow, what has the world come to?
Posted on Feb 02, 2012 | 12:37 AM EST reply Recommend Flag actions
Agreed.
Posted on Feb 02, 2012 | 5:01 AM EST reply Recommend Flag actions
Advertising.
Posted on Feb 02, 2012 | 6:12 AM EST reply Recommend Flag actions
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