...Individual assignment The social networking company Facebook, Inc. held its initial public offering (IPO) on May 18, 2012. The IPO was one of the biggest in technology, and the biggest in Internet history, with a peak market capitalization of over $104 billion. Facebook's founder and chief executive Mark Zuckerberg had for years been unwilling to take the company public and he resisted a number of buyout offers after Facebook's founding. The company did, however, accept private investments from companies--often technology firms. Question 1: What made Facebook go to public on May 18, 2012? Many reasons, what made Facebook going to public on May 18, 2012, but there are only 3 main reasons which are: * SEC Rule: The key reason Facebook is going public is because of an antiquated Securities and Exchange Commission rule from 1964 that says that any private company with more than 500 "shareholders of record" must adhere to the same financial disclosure requirements that public companies do. That means filing detailed quarterly and yearly financial reports, and dealing with all the scrutiny that comes with a powerful company opening its books. * Employees will breathe a sigh of relief: One big upside is that many employees can start cashing out, and the newfound wealth of a successful Facebook IPO would be widespread enough that it should be easy to spot. Given that, going public is important to help Facebook keep good people, although some newly rich always bolt (as happened...
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...IPO When a business is growing, but not as quickly as it could, the next best thing to do instead of borrowing capital is going public. A company can do so by creating an initial public offering, or IPO where they sell ownership shares of the business to the public. The IPO can open windows of opportunities for a business in terms of financial growth and public awareness. On the downside, an IPO can restructure a company’s management and everything about the company must be disclosed and viewed even by competitors. With this in mind, many companies who are deciding between whether to go public or not may have their second thoughts. I will be discussing the advantages and disadvantages that come with IPOs and the results that some companies have seen from going public. What is an IPO? The initial public offering or IPO according to CNNMoney.com is “the first time that a company’s shares are traded on a public market.” It is the process where a privately owned company issues shares of stock to the public, in other words, the company is “going public.” Small private companies have IPOs to raise capital and gain public awareness, while large, well-established companies have IPOs to become publicly traded companies. A person who is interested in a particular company can buy one of two types of shares: common or preferred stock. When a company only issues one class of stock, it is called common stock. Common stocks are generally less expensive to purchase than preferred...
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...to Dr. Chaiwuth Tangsomchai Course work 702711 Financial Management) Master of Business Administration for Executive(Chiang Mai) Business Administration Chiang Mai University March, 2012 - - Index - Page Chapter I Introduction & Objective 1.1 Introduction 1.2 Objectives Chapter II Company 2.1 Facebook, Inc. Profile 2.2 The Corporate Mission 2.3 Executive Officer and director 2.4 Facebook’s Shareholder 2.5 Facebook Milestone 2.6 Facebook Business 2.7 Competition 2.8 Revenues Stream 2.9 Facebook Market Opportunities 2.10 Facebook Strategy 2.11 Summary of Risk Factor Chapter III Facebook Financial Report 3.1 Consolidated Balance Sheets 3.2 Consolidated Statement of Income 3.3 Basic Earning Per Share 3.4 Pro-forma Earning Per Share 3.5 Consolidated Statement of Cash Flow 3.6 Consolidated Statement of Stockholder’s Equity 3.7 Dividend Policy Chapter IV Facebook Initial Public Offerings(IPOs) 4.1 IPOs Advantage 4.2 Preparing to go to Public 4.3 Facebook IPOs 4.4 Facebook IPOs Underwriting Company 4.5 Facebook IPOs Counsel Company 4.6 Facebook IPOs Financial Auditor 4.7 Why Facebook go to Public? 4.8 U.S. Stock Market 4.9 Which Market Facebook Plan to Listing? 4.10 Facebook IPOs Advantage and Opportunities Chapter V Conclusion Reference 1 2 3 3 3 4 5 7 7 8 9 10 10 12 14 15 16 17 18 19 21 22 23 24 27 27 28 29 30 33 34 36 CHAPTER I INTRODUCTION AND OBJECTIVES 1.1 Introduction Nowadays, firms objective generally relate...
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...MBA 764: Corporate Governance Case Assignment (2): Going public – Facebook Inc. Facebook Inc. is a US publicly listed company. Find its Annual Report for 2012 and refer to it when answering the following questions: 1. When was Facebook Inc. founded? When did it complete its IPO? Where is it incorporated? Facebook was incorporated in Delaware in July 2004. Facebook completed their initial public offering in May 2012 and its Class A common stock is listed on The NASDAQ Global Select Market their IPO in which they issued and sold 180,000,000 shares of Class A common stock at a public offering price of $38.00 per share and the selling stockholders sold 241,233,615 shares of Class A common stock 2. What is Facebook Inc.'s ticker symbol? Under the symbol “FB.” At which exchange is Facebook Inc. share trade? Stocks are listed on The Nasdaq Global Select Market What is the closing price of Facebook Inc. share on March 15, 2016? 110.67*$. 3. How much are Facebook Inc.’s total assets ($15,103), total liabilities (3,348) and total equity ($11,755) , as of December 31st, 2012? 4. What is the number of stock outstanding of Facebook Inc.? Explain the structure and the effects of Facebook Inc.’s common stock and the voting agreements among stockholders? Commonly known as Class A and Class B shares, the former are composed of preexisting common stock, while the latter include a proportionally larger amount of votes per share (usually 10). Class B shares...
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...Initial Public Offerings Name: FIN 370/Finance for Business Date: Initial Public Offerings Private companies transform into public companies to expand and attract investors. To do this they begin selling common stock to institutional investors who then sell the stock to the general public through a securities exchange. According to Mayo, 2012, “If this sale is the first sale of common stock, it is referred to as an initial public offering (IPO).” In this essay, we will attempt to describe the initial public offering for the global firm, Facebook, Inc. We will describe the role of the investment banker and underwriter, the role of an originating house and a syndicate, explain the pricing of the issue, discuss some of the risks involved in the public offering and how the securities laws deal with them, and discuss any foreign exchange risks the company can face with ideas about how to mitigate them. The first thing Facebook needed to do to launch their IPO was to hire an investment banker and an underwriter. Facebook hired thirty-three investments banks who acted as brokers to bring together individuals with funds to invest in Facebook. The underwriters in those investment banks together with Facebook agreed on a certain amount to raise on the IPO. Their underwriters provided several services, but the main role is basically to take responsibility of selling those shares to investors. If they fail to sell the shares, they still owe the agreed amount to Facebook. The investment...
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...Initial Public Offerings Barry England, Steven Nesbit, Clifton Hall, Miguel Villanueva, and John Warren FIN 370/Finance for Business October 27, 2014 Gabriel Renero Initial Public Offerings Private companies transform into public companies to expand and attract investors. To do this they begin selling common stock to institutional investors who then sell the stock to the general public through a securities exchange. According to Mayo, 2012, “If this sale is the first sale of common stock, it is referred to as an initial public offering (IPO).” In this essay, we will attempt to describe the initial public offering for the global firm, Facebook, Inc. We will describe the role of the investment banker and underwriter, the role of an originating house and a syndicate, explain the pricing of the issue, discuss some of the risks involved in the public offering and how the securities laws deal with them, and discuss any foreign exchange risks the company can face with ideas about how to mitigate them. The first thing Facebook needed to do to launch their IPO was to hire an investment banker and an underwriter. Facebook hired thirty-three investments banks who acted as brokers to bring together individuals with funds to invest in Facebook. The underwriters in those investment banks together with Facebook agreed on a certain amount to raise on the IPO. Their underwriters provided several services, but the main role is basically to take responsibility of selling...
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...Facebook study p1 Facebook Study Case Elene Toussaint MAN 200.002 Prof. Best May 23, 2013 Facebook study p2 Facebook is the first largest social network on the web. Primarily focused on high school to college students and you can find friends/family members. Facebook has been gaining market share, and more significantly a supportive user base. Since their launch in February 2004 by Mark Zuckerberg Facebook is worth 141 billion with 1 billion of users. According to Floating Facebook “The value of friendship Facebook is likely to become a gargantuan company. That will bring risks as well as rewards” Feb 4th 2012, SAN FRANCISCO, started for Pre- Initial public offering (IPO) “Facebook has techies and venture capitalists been so aflutter”. In addition, the agreed settlement was for 1.2m shares which were worth $300m at Facebook's IPO in 2004. The company structure at IPO is CEO has a voting percentage of 57.9% of the board election which is simple to vote majority and rules of a controlled company. The ownership of Facebook is the Chief Executive Officer (CEO) Mark Zuckerberg and he owns 28.4% of Facebook. Facebook funding before IPO became into the photo which had millions of users, Friendster attempted to acquire the company for $10 million in mid 2004. However, Facebook turned down the offer and subsequently received $12.7 million in funding from Accel Partners. Sean Parker provided the introduction to their first investor, Peter Thiel, cofounder...
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...Analysis: Facebook, Inc. Merlinda C. Lucas MBA6008 Global Economic Environment Instructor: Lester Hadsell Abstract The Coffee Crisis case study illustrates how the decline in coffee consumption and the rise of coffee production was addressed by the governments of coffee producing countries in 2004. The coffee market was identified, defined and explained in the context of both international nature and structure. The new entrants into the coffee market were identified and examined. A supply and demand analysis was conducted to address what the shift factors were and what were some of the changes in consumer behavior. It was concluded some of the remedies presented by the International Coffee Organization, Inter-American Development Bank and Oxfam were incorporated to help elevate some of the issues presented and analyzed. Facebook, Inc. is the world’s leading social networking company. It became a public traded company on May 18, 2012, filing a $5 billion initial public offering (IPO), “making it one of the biggest in tech history and the biggest in Internet history” (Tangel, Hamilton, 2012). Facebook is social networking service, established in 2004 and headquartered in Menlo Park, CA, that builds products to create utility for users, developers, and advertisers. Users (people) use Facebook to stay connected and share and express what matters to them with their friends, family, and community through their user profiles. Developers use the Facebook Platform...
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...Facebook is an online social networking site, which is headquartered California. Facebook inception was by Mark Z, who launed it on February 2004. The founders had initially limited the website's membership to Harvard students, but later expanded it to colleges in the Boston area, the Ivy League, and Stanford University. It gradually added support for students at various other universities and later to high-school students. Since 2006, anyone who is at least 13 years old was allowed to become a registered user of the website, though the age requirement may be higher depending on applicable local laws.[10] Its name comes from a colloquialism for the directory given to it by American universities' students.[11] After registering to use the site, users can create a user profile, add other users as "friends", exchange messages, post status updates and photos, share videos and receive notifications when others update their profiles. Additionally, users may join common-interest user groups, organized by workplace, school or college, or other characteristics, and categorize their friends into lists such as "People From Work" or "Close Friends". Facebook had over 1.18 billion monthly active users as of August 2015.[7] Because of the large volume of data users submit to the service, Facebook has come under scrutiny for their privacy policies. Facebook, Inc. held its initial public offering in February 2012 and began selling stock to the public three months later, reaching an original...
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...Since the movie “the Social Network,” Facebook had been privately controlled without any outside interference. The company’s reluctance to go out in the public did not last long and realized it had to go public for two reasons. As it grew bigger with over 800 million users and 500 shareholders, it had to release financial details to SEC as a requirement. Moreover, going to public was the best way to attract more investors to fund and make it even bigger. So the company finally decided to start its initial public offering (IPO). On May 18th 2012, the news of its IPO hyped many investors and stockholders. Nasdaq even put a huge digital billboard welcoming Facebook on board. The stock was opened up with high price of $38(5) and expected to trade really well through the first day, but that did not happen. The stock price did go up as high as $42 in its opening hours before it settled back toward $38. And the nightmare of falling stock price still goes on and some of the major unforeseen issues of Facebook appeared on a surface. Facebook had been the leading giant of social network, because it had the technology to make SNS website more user friendly than those of its competitors. Then the users started to switch their computers for mobile phones, ever since the IPhone and other smart phones emerged. Regardless of what was happening around, Mark Zuckerberg, the Facebook found, decided to keep improving on the computer-based Facebook, not improving on the mobile-based one. Before...
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...Hello!! Just fooled you…:P Bye now taatata Facebook is an online social networking service headquartered in Menlo Park, California. Its website was launched on February 4, 2004, by Mark Zuckerberg with his Harvard College roommates and fellow students Eduardo Saverin,Andrew McCollum, Dustin Moskovitz and Chris Hughes.[8][9][10] The founders had initially limited the website's membership to Harvard students, but later expanded it to colleges in the Boston area, the Ivy League, and Stanford University. It gradually added support for students at various other universities and later to high-school students. Since 2006, anyone who is at least 13 years old was allowed to become a registered user of the website, though the age requirement may be higher depending on applicable local laws.[11] Its name comes from the face book directories often given to American university students.[12] After registering to use the site, users can create a user profile, add other users as "friends", exchange messages, post status updates and photos, share videos, use various apps and receive notifications when others update their profiles. Additionally, users may join common-interest user groups, organized by workplace, school or college, or other characteristics, and categorize their friends into lists such as "People From Work" or "Close Friends". Also users can complain or block unpleasant people. Facebook had over 1.18 billion monthly active users as of August 2015.[7]Because of the large volume...
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...Twitter’s environment and provides recommendations for marketing-based solution. Company: Founded by Evan Williams in early 2006, Twitter was initially started as a status update project for Odeo Inc. Podcasting. Odeo was a podcasting form which aimed to successfully create a system that would make it possible to produce podcasts with as little as a mobile phone. However, as major competitors with bigger budgets, such as Apple Inc., entered the market, the board of directors for Odeo asked the company to strategize their business in a new light. The result was an internal project, Twttr Beta, which allowed staff to update each other through the service. In October 2006, newly re-named “Twitter” was acquired by Obvious Corp., a company set up by Williams, Jack Dorsey and Christopher Stone to allow the group to focus on the project. Today, with 140 characters or less, subscribers of Twitter can update their followers with a “tweet” in real time. Twitter, a micro blogging service, is built on open service and allows its’ over 200 million active users to broadcast over 500 million tweets per day. Currently, it is one of the most popular social media tools after Facebook and Google. Product: Twitter is essentially text based, which means that unlike other social media platforms such as Facebook or Instagram, exchanging videos and photos is not one of Twitter’s services. As such, the main product that Twitter offers to users throughout the world is “tweeting”; Twitter’s brand essence...
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...For the exclusive use of L. Wang, 2016. W12453 FACEBOOK, INC: THE INITIAL PUBLIC OFFERING (A) 1 Ken Mark wrote this case under the supervision of Professors Deborah Compeau, Craig Dunbar and Michael R. King solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2012, Richard Ivey School of Business Foundation Version: 2014-03-13 INTRODUCTION “The entire market is waiting for the emergence of Facebook as a publicly traded company,” said Jonathan McNeil, lead analyst at CXTechnology Fund (CXT), as he spoke to the fund’s investment committee on May 16, 2012. The highly anticipated pricing of the Facebook initial public offering (IPO) was underway, and in three hours, McNeil was scheduled to provide the lead underwriter, Morgan Stanley, with CXT’s final indication...
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...MINI – CASE ASSIGNMENT Facebook 1. What is the name of the company? What is the industry sector? Facebook Inc. is a multi-billion dollar company in the Internet informational providers, technology (IT) industry. Facebook Inc. is one of the leading an online social networking service in the world and is continuing to grow as the front-runner in their industry. 2. What are the operating risks of the company? No company with no operational risks to consider. Operational risk is the prospect of loss resulting from inadequate or failed procedures, systems or policies. The operating risks for Facebook Inc. include: Facebook's ad revenue growth While the company's advertising model seems to be delivering great results, there are still reasons for a more cautious assessment. Mobile advertising is booming, and accounts for roughly two-thirds of Facebook's revenue, but sales conversion for traditional products from mobile ads remains low compared to desktop alternatives, and it's unclear whether there will be significant improvement on this front.On the other hand, app install ads have proven to be effective, but the company has chosen not to give a breakdown on how much revenue.(The Motley Fool) Facebook could be disrupted by competing social networks Three social media networks competing with Facebook GOOGLE+ Launched in 2011, the service looked to offer a cleaner, more user-friendly alternative to Facebook. At the time, the latter was drawing torrents of...
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...of IPO should E-Bay use to take Skype public - a traditional IPO or an online auction? E-Bay should use an online auction initial public offering (IPO) to take Skype public. In April 2009, E-Bay announced plans to separate Skype from the company. E-Bay’s main reason for selling Skype is the company allows 405 million users to make free phone calls over the internet which does not have the synergies to remain with an online payment business. This paper will argue that E-Bay an e-commerce company should use the online auction IPO procedure to take Skype public. This paper will also discuss the advantages and disadvantages of going public and how using the traditional IPO is very costly compared to online auction /Dutch IPO procedures which gives more opportunity for individuals investors. Background E-bay leading ecommerce company brought Skype into the corporation to become come one of the largest telecommunications company in the world. Buying Skype would allow E-Bay to soar over all the other technology giants such as Google and Microsoft Company in the telecommunication industry. E-Bay paid $2.6 million in cash and stock for Skype along with future payments that could total an additional $1.5 billion ( Kafka, 2010). E-Bay found investment group led by Silver Lake would pay $1.9 billion in cash and retain 65% interest in Skype and E-Bay would keep hold of 35% equity interest. Initial Public Offering Advantage Going public will offer a company financial...
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