Since the day Mark Zuckerberg launched the now #1 social network from his dorm room at Harvard in February of 2004, an IPO was inevitable. According to The Facebook Effect by David Kirkpatrick there were offers to buy Facebook by 11 different companies including Viacom, Google, Yahoo and Microsoft. But in the words of Sean Parker, “A million dollars isn't cool, you know what's cool? A billion dollars.” (via The Social Network movie. And billions of dollars is what Founder, Chairman and CEO of Facebook believed his company was worth.
Wednesday, Feb 1 , 2012
- Facebook announced plans for its IPO in an official Form S-1 SEC filing.
- Facebook says it has 845 million monthly active users (MAU), 2.7 billion likes and comments per day, 250 million photos uploaded per day and 100 billion friendships.
- 2010 Revenue was reported at $1,974 million; 2011 Revenue was reported at $3,711 million.
- Facebook files Amendment No. 2 to Form S-1.
- Facebook announced the $1 billion acquisition of Instagram, the popular photo-sharing service. "I'm excited to share the news that we've agreed to acquire Instagram and that their talented team will be joining Facebook," Zuckerberg wrote on his Facebook page.
- Facebook files Amendment No. 4 to Form S-1 and says Q1 net profits fell 12% to $205 million due to higher expenses.
- Facebook says it has 901 million monthly active users, 3.2 billion likes and comments per day, 300 million photos uploaded per day and 125 billion friendships.
- Facebook files Amendment No. 5 to Form S-1 where it sets a price range of $28 to $35 for its IPO.
"Facebook, Inc. is offering 180,000,000 shares of its Class A common stock and the selling stockholders are offering 157,415,352 shares of Class A common stock. We will not receive any proceeds from the sale of shares by the selling stockholders. This is our initial public offering and no public market currently exists for our shares of Class A common stock. We anticipate that the initial public offering price will be between $28.00 and $35.00 per share."
- Total shares to be offered = 337,415,352
- Facebook kicks off its investor road show in Manhattan.
- Road show heads to Boston. Michael Pachter, an analyst for Wedbush Securities, make a big deal over founder and CEO, Mark Zuckerberg, showing up wearing a hoodie rather than the typical Wall Street appropriate a suit and tie. Patcher says on Bloomberg TV, "Mark and his signature hoodie? I mean, he's actually showing investors he doesn't care that much, he's going to be him, and he's gonna do what he's always done, and I think that's a mark of immaturity."
- Facebook files Amendment No. 6 to Form S-1 expressing caution about revenue growth due to rapid shift by users to using mobile devices to access Facebook where they are not making much money from advertising.
"Mobile MAUs. We define a mobile MAU as a user who accessed Facebook via a mobile app or via mobile-optimized versions of our website such as m.facebook.com, whether on a mobile phone or tablet such as the iPad, during the period of measurement. Worldwide mobile MAUs increased by 69% from 288 million as of March 31, 2011 to 488 million as of March 31, 2012."
"Increasing Mobile Usage. Increasing use of Facebook on mobile devices will also affect our performance, particularly if mobile use substitutes for use on personal computers. Historically, we have not shown ads to users accessing Facebook through mobile apps or our mobile website and we cannot be certain that our mobile monetization approaches will be successful in generating meaningful revenue. We cannot quantify the extent to which mobile usage of Facebook is substituting for, rather than incremental to, usage of Facebook through personal computers, but we generally expect mobile usage to increase at a faster rate than usage through personal computers for the foreseeable future."
- According to Reuters, Bank of America analyst Justin Post held a conference call with big investors where he revealed the lower estimates.
- The road show wrapped up in Palo Alto, California. The company "signals" that it may start showing ads on websites other than Facebook, according to the Associated Press.
- During road show analysts at Morgan Stanley, Goldman Sachs and JP Morgan reduced their internal revenue forecasts which did not get disclosed during the road show or before the IPO. This information will not be revealed until Tuesday May 22, several days after the IPO.
- Facebook files Amendment No. 7 to Form S-1 increasing the IPO price range to $34 to $38 per share.
"Facebook, Inc. is offering 180,000,000 shares of its Class A common stock and the selling stockholders are offering 157,415,352 shares of Class A common stock. We will not receive any proceeds from the sale of shares by the selling stockholders. This is our initial public offering and no public market currently exists for our shares of Class A common stock. We anticipate that the initial public offering price will be between $34.00 and $38.00 per share.
- "Total Shares to be Offered = 421,233,615
- In an unexpected move, the day before Facebook establishes the initial price of its shares, General Motors announces it is withdrawing its advertising from the social networking site. GM says the ads simply don't work.
- Facebook files Amendment No. 8 to Form S-1 increasing the number of shares offered by 84 million shares to a total offering of 421,233,615 shares.
Facebook, Inc. is offering 180,000,000 shares of its Class A common stock and the selling stockholders are offering 241,233,615 shares of Class A common stock. We will not receive any proceeds from the sale of shares by the selling stockholders.
- Total Shares to be Offered = 337,415,352
- Facebook prices IPO at $38 per share which raises $16 billion.