" Facebook . com, Inc: The first Public Offering”
Fb, which was founded by Indicate Zuckerberg in February 2005, is an online social networking system with the mission of making the earth more open up and linked. Within a number of years, Facebook drawn millions of fresh users, via 1 , 000, 000 Monthly Active Users to 845 large numbers Monthly Effective Users. Even though competing with global and regional businesses in the industry, Fb kept growing rapidly. Together with the high expectation of buyers, Facebook finally decided to go community. The " Red Herring” of Facebook . com stated that its aim was to hook up all two billion global Internet users. Basing on the analysis of Facebook's GOING PUBLIC, we would like to provide several recommendations on the expense of Facebook . com. Analysis
Facebook generated their revenues largely through marketing. Advertising made up 98% of Facebook's income in 2009, 95% in 2010 and 85% this year. As a actual identity marketing website, Facebook can match the right products based upon users' choices. Facebook gives advertisers the chance to target you based on the users' market information. It owns any information uploaded by users. Facebook or myspace records each one of these information in database, that can be used by marketers to target certain segments of users (social context). Moreover, Facebook generates money by its payments business from selling digital goods through online gaming companies. Income generated coming from selling items in free online games increased by $13 , 000, 000 in 2009 to $557 , 000, 000 in 2011 and still has way up trend. Apparently the huge customer database with tremendous info on these users and the penetration of smartphone are the most significant value drivers of Fb. As we know, Facebook or myspace appealed to the people who are looking to reconnect with family and outdated friends in order to find new friends. That is certainly what made Facebook or myspace an outstanding company comparing to LinkedIn, Google plus and Twitter and so forth In other words, the authentic identity of users together with the solid users foundation made Fb an helpful company. In addition , the overall technical approaches brought simplicity both in its appearance and even in their functionality.
This year Facebook Incorporation. decided to go general public because of the increasing popularity and the visibility of social media businesses. Moreover, Facebook or myspace IPO will make public industry for the current shareholders and enable future usage of the public collateral markets. The Proceeds from the IPO will be used for seed money and other general corporate functions.
In general, a global economic environment is usually moving forward at this point but it remains to be fragile. The annual GROSS DOMESTIC PRODUCT growth rate is predicted to be 2 . 2 percent in 2012, up from 1 ) 7 percent in 2011. In addition , US joblessness remained high above eight percent. Industry volatility and economic uncertainness had still left the BORSEGANG (OSTERR.) market in the doldrums. The number of the IPOs during the first quarter of 2012 chop down down drastically to 157 from 383 of the second quarter of 2011. Similarly, brought up IPO capital was just 14. three or more billion throughout the first 1 / 4 of 2012 compared to 46. 6 billion during the first quarter of 2011 (Exhibit 1- 2).
Several Online community companies travelled public in america in 2011. In-may 2011, LinkedIn had raised $353 , 000, 000 by issuing 7. 84 million stocks at $45/share. Because the require by shareholders was overpowering, the price talk was improved from the selection of $32 to $35 for the range of $42 to $45 before GOING PUBLIC day. Even though the price currently rose sharply before the IPO day, LinkedIn's stock value rose 109 percent within the first time of trading, making the IPO a huge success.
The " deal-of-the-day” coupon business Groupon travelled public in November 2011, raising $700 million inside the largest ALL OF US tech GOING PUBLIC since Yahoo. Due to the demand for the deal, the offered shares were increased from 35 million to 35 mil and the selling price also went up to $20, which is over a initial selection of $16...