Facebook files for historic $5 billion IPO

MUMBAI: Social networking site, Facebook, has filed for an historical $5 billion IPO with the Securities and Exchange Commission in United States, making it one of the biggest in the Internet industry.

Analysts though predict the IPO to raise as much as $10 billion which would value the company at a mind-boggling $100 billion, and will dwarf the 2004 IPO of search engine giant Google Inc which raised $1.67 billion.

At $10 billion, the IPO would be fourth-largest in U.S. history after Visa Inc, General Motors, and AT&T Wireless, according to Thomson Reuters.

Launched in 2004, the social networking giant commands an active user base of over 800 million with revenues of $3.71 billion and a net profit of $1 billion last year. The company also revealed in its filing that it had earned 85 per cent of its revenue from advertising last year while social-gaming company Zynga, creator of Farmville, accounted for 12 per cent of total revenues.

The IPO would increase the fortune of Facebook founder Mark Zuckerberg who would be worth $28 billion at a $100 billion valuation with an economic control of about 28 per cent of the shares, thereby ranking him as the fourth-richest American.

Indications are that he would keep an iron grip over the company even after the IPO, which analysts fear would mean little say for investors in the management of the company.

As Facebook states in its prospectus, Zuckerberg will "control all matters submitted to stockholders for vote, as well as the overall management and direction of our company."

Other major shareholders in Facebook include Accel Partners with 11.4 per cent of the investor votes and co-founder Dustin Moskovitz, who holds 7.6 per cent voting power, Facebook employees have majority stake at 30 per cent besides a host of institutions and small investors.

Facebook‘s stock would trade under the symbol FB on either the Nasdaq Stock Market or the New York Stock Exchange. The company plans to use the proceeds for working capital and other general corporate purposes.

The company has appointed Morgan Stanley, Goldman Sachs and JPMorgan as its lead underwriters. Other bookrunners who were appointed to manage the IPO included Bank of America Merrill Lynch, Barclays Capital and Allen & Co.

With consumers shifting their preference to smartpphones and tablets as the preferred medium of accessing content, Facebook has turned its focus to the mobile technology, which it expects would bring in its next 1 billion users.

Latest Reads
HAL Robotics ropes in Navanit Samaiyar as board member and advisor

MUMBAI: HAL Robotics has roped in Navanit Samaiyar as its board member and advisor. Samaiyar has a record of setting up, scaling and transforming businesses across a very wide cross section of industries spanning from IT/ ITeS to steel, telecom, engineering goods, earthmoving machinery, logistics...

Technology Hardware Components
Republic TV launches Android app

MUMBAI: Republic TV is on a roll. From rocking the ratings chart in launch week itself to going international, the channel has added one more accomplishment to its kitty. The Republic TV Android app is now live.

Technology Software Applications
STB cos in India, China enhancing features, providing customised solutions, Technavio enlists top vendors

MUMBAI: The global STB market is characterised by intense competition as the market is saturated in developed countries. The market share of these players is declining because of the entry of new players. The STB companies are enhancing the features of STBs and providing customised solutions to...

Technology Hardware Set-top Boxes
India's PFT Clear Media ERP suite to help US' PBS content delivery

MUMBAI: Prime Focus Technologies (PFT), the technology arm of Prime Focus, announced that its CLEAR™ Media ERP Suite has been selected by Public Broadcasting Service (PBS) to enhance their Network Operations Center (NOC) ecosystem efficiencies and sustainability, with the objective of reducing...

Technology Software Applications
Broadcasters, OTTs to gain as Via adds xHE-AAC at special rate

MUMBAI: Via Licensing Corporation, a intellectual property solutions provider, has announced the upcoming availability of Extended High Efficiency AAC (xHE-AAC) as part of the Advanced Audio Coding (AAC) patent pool. The expanded patent pool licence will be available at no additional cost to...

Technology Software Applications
Tata Comm to deliver Motorsport videos on global devices

MUMBAI: Tata Communications will now deliver video content for viewers' all devices over its global network. The two have partnered to power the growth of the network’s internet television platforms.

Technology Software Applications
How to create live video content sans pros, convert radio broadcast into visual show

MUMBAI: ChyronHego will be showcasing its live production, automation solutions at Broadcast India show in Mumbai in mid-October.

Technology Software Applications
Sony renews IP licence deal with TiVo

MUMBAI: TiVo Corporation, a leader in entertainment technology and audience insights, has announced that Sony Corporation, a leader in consumer electronics, has renewed its multi-year intellectual property (IP) licence agreement. The license to TiVo’s patent portfolios covers all of Sony’s...

Technology Software Applications
Digital TV, growing telecom major drivers of coaxial cable growth in A-Pac: Study

MUMBAI: The global coaxial cables market is mature owing to the use of coaxial cables in industries for a long time and the slow or stagnant product innovation.

Technology Hardware Components

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories