FB: Facebook Files for $5 Billion IPO
Facebook IPO Filing Feb 1, 2012: What is Facebook's Ticker Symbol?
Facebook has filed papers for an IPO that hopes to raise $5 billion. This is the largest internet IPO since Google's in 2004. Facebook intends to trade under the ticker symbol "FB". Earlier reports this week had Facebook eyeing a $75-100 billion IPO, but Mark Zuckerberg's company didn't go that big.
Facebook claimed $3.7 billion in revenue, with $1 billion in income for 2011. As did Sergey Brin and Larry Page with Google's IPO, Mark Zuckerberg will retain control of 57% of Facebook's stock, so that the company would not be totally at the whim of shareholders.
Facebook's Biggest Threats
In the IPO filing, Facebook had to list some of the biggest threats to its health as a company, and a social network indeed faces many risks. For Facebook, these include:
- Reliance on Zynga (Farmville and its ilk make up 12% of Facebook's profits)
- Ability to manage privacy concerns (the company already sucks at this)
- Capacity for sustained growth (running out of people to convert into FB users)
- Internet- and privacy laws (SOPA and its ilk, varied across many nations)
- End users' changing taste (this risk is exacerbated by the increasing screen puke with each new Facebook UI)