Facebook's Initial IPO: $5 Billion To Be Raised
February 2, 2012 at 8:01 AM (PT)
As reported in ALL ACCESS (NET NEWS, 1/27), FACEBOOK indeed filed to raise $5 billion in an initial public offering, CNN reports. It's not yet known on which stock exchange FACEBOOK will trade, or what its ticker symbol will be.
The social media giant reported that it earned $1 billion on sales of $3.7 billion, from its 845 million daily active users. The vast majority of FACEBOOK's revenue comes from a combination of search and display ads; the rest comes from getting a percentage of revenue derived from the sale of apps and game usage.
It's expected that FACEBOOK will re-file its paperwork several times over the coming months. Those updates will add more details reveal more of its financial data.
How much FACEBOOK is worth? That's up for considerable speculation. FACEBOOK said it conducted its own valuation of its stock at the end of each quarter, and as of DECEMBER 31st determined it to be worth $29.73 a share. Most analysts estimate Facebook's valuation will fall somewhere between $85 billion to $100 billion.