Facebook has filed an IPO. It is expected to raise about $5 Billion. Also that might put on the path of breaking the $100 Billion barrier for market valuation. That means chances are that in a few days, Mark Zuckerberg’s company which was started from a college dorm room along with a couple of friends, will be worth a 100 billion dollars.
Facebook’s IPO filing, has revealed some interesting facts about what is the social network all about.
Firstly, on page 18 of the document, it reveals that Zynga the company behind popular Facebook games like Farmville and Mafia Wars is responsible for 12% of its revenues.
It also reveals revenues of $3.7 billion while an income of $1 billion.
What next for Facebook?
Facebook will probably be using the extra cash it picks up to shore up improvements to its service and its performance against upcoming competitors like Google+ or other older ones like Twitter and LinkedIn. I doubt it will be worrying much about MySpace. 🙂
It would also help Facebook a lot if it improved its image on ‘Privacy’.
With new App sharing on Timelines, we could probably see more targeted ads for brands. We might see more improvements brands being able to interact more with users via Facebook.
What will be Mark Zuckerberg’s Salary?
I was reading through the IPO document (see link at the end) and found something interesting. It seems Mark Zuckerberg is following in the steps of Steve Jobs, by reducing his base salary to $1.00 form the year 2013. A the moment he earns $500,000 per year.
What are your thoughts on Facebook becoming a public company? Will it spur it to grow more and innovate better or will it lose its edge? Do drop in your comments.
Link: Facebook IPO Prospectus