Study Document
Initial Public Offering Facebook A-Level Coursework
Pages:3 (1388 words)
Sources:3
Subject:Business
Topic:Initial Public Offering
Document Type:A-Level Coursework
Document:#67018383
Business -- Corporate Finance -- IPO Facebook
Provide a brief description of the company you chose, its main business and operational activities and a short synopsis of the main developments of the company over the past few years
Facebook, Inc. is a global social networking company building and employing tools and applications for communication among its users on computers and mobile devices. Incorporated in 2004, Facebook, Inc. has approximately 5,299 employees and more than 1.06 billion monthly active users on its web site: http://www.facebook.com. Its corporate headquarters are located in Menlo Park, CA and its corporate staff consists of: Mr. Mark Zuckerberg, Founder, Chairman and Chief Exec. Officer; Mr. David A. Ebersman, Chief Financial Officer; Ms. Sheryl K. Sandberg, Chief Operating Officer and Director; Mr. Michael Schroepfer, Chief Technology Officer and VP of Engineering; and Mr. David B. Fischer, VP of Marketing and Bus. Partnerships.
Facebook, Inc. is a publicly traded corporation with Index Memberships on the Nasdaq 100 and AMEX, listed in the Industry of Information Providers and the Sector of Technology. Effective October 18, 2013 at 7:59PM EDT, its Current Stock Price is $54.26. Its Sales/Revenue and Profitability (Net Income) are as follows, with all numbers in thousands:
Period Ending
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Total Revenue
5,089,000
3,711,000
1,974,000
Cost of Revenue
1,364,000
860,000
493,000
Gross Profit
3,725,000
2,851,000
1,481,000
Operating Expenses
Research Development
1,399,000
388,000
144,000
Selling General and Administrative
1,788,000
707,000
305,000
Non-Recurring
Others
Total Operating Expenses
Operating Income or Loss
538,000
1,756,000
1,032,000
Income from Continuing Operations
Total Other Income/Expenses Net
7,000
(19,000)
(2,000)
Earnings Before Interest And Taxes
545,000
1,737,000
1,030,000
Interest Expense
51,000
42,000
22,000
Income Before Tax
494,000
1,695,000
1,008,000
Income Tax Expense
441,000
695,000
402,000
Minority Interest
(21,000)
(332,000)
(234,000)
Net Income From Continuing Ops
32,000
668,000
372,000
Non-recurring Events
Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items
Net Income
32,000
668,000
372,000
Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares
32,000
668,000
372,000
(Yahoo, Inc., 2013)
Facebook, Inc.'s Total Assets, Total Liabilities and Owners' Equity for the past 3 years, with numbers all in thousands, follows:
Period Ending
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Assets
Current Assets
Cash And Cash Equivalents
2,384,000
1,512,000
1,785,000
Short-Term Investments
7,242,000
2,396,000
Net Receivables
1,170,000
547,000
373,000
Inventory
Other Current Assets
471,000
149,000
88,000
Total Current Assets
11,267,000
4,604,000
2,246,000
Long-Term Investments
Property Plant and Equipment
2,391,000
1,475,000
574,000
Goodwill
Intangible Assets
1,388,000
162,000
96,000
Accumulated Amortization
Other Assets
57,000
90,000
74,000
Deferred Long-Term Asset Charges
Total Assets
15,103,000
6,331,000
2,990,000
Liabilities
Current Liabilities
Accounts Payable
488,000
359,000
166,000
Short/Current Long-Term Debt
534,000
450,000
181,000
Other Current Liabilities
30,000
90,000
42,000
Total Current Liabilities
1,052,000
899,000
389,000
Long-Term Debt
1,991,000
398,000
367,000
Other Liabilities
305,000
135,000
72,000
Deferred Long-Term Liability Charges
Minority Interest
Negative Goodwill
Total Liabilities
3,348,000
1,432,000
828,000
Stockholders' Equity
Misc Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
615,000
615,000
Common Stock
Retained Earnings
1,659,000
1,606,000
606,000
Treasury Stock
Capital Surplus
10,094,000
2,684,000
947,000
Other Stockholder Equity
2,000
(6,000)
(6,000)
Total Stockholder Equity
11,755,000
4,899,000
2,162,000
Net Tangible Assets
10,367,000
4,737,000
2,066,000
(Yahoo, Inc., 2013)
2). Explain why you chose this company (e.g., what makes it interesting to you personally? Is it profitability of the company over the last three years or something else?). Keep in mind that one of the main goals of a for-profit corporation is the "maximization of shareholders' wealth."
Facebook, Inc. was chosen because of its notoriety and financial volatility. The company is one of the most modern sources of global communications, which clearly tapped into a highly lucrative and rapidly expanding market, with resulting high profitability, particularly commencing in 2009 and continuing (Forbes.com, LLC, 2013); nevertheless, its IPO was marked with missteps, investor disappointments and numerous lawsuits (Tsukayama, 2012). Facebook, Inc. is so pervasive in modern society that it maintains 11 offices in the United States and approximately 25 global offices in such disparate places as Amsterdam, Buenos Aires and Singapore (Facebook, Inc., 2013). As a result, Mark Zuckerberg, is found among Forbes Lists as follows: #20 of the 400 richest people in America; #66 of the…
Sample Source(s) Used
Works Cited
De la Merced, M.J. (2012, May 18). Facebook Closes at $38.23, Nearly Flat on Day. Retrieved October 19, 2013 from dealbook.nytimes.com Web site: http://dealbook.nytimes.com/2012/05/18/facebook-opens-at-42-05-in-debut-but-falls-quickly/?hp&_r=0
Facebook, Inc. (2012, February 1). Registration Statement on Form S-1. Retrieved October 19, 2013 from www.sec.gov Web site: http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm
Forbes.com, LLC. (2013). Mark Zuckerberg. Retrieved October 19, 2013 from www.forbes.com Web site: http://www.forbes.com/search/?q=Zuckerberg
Oran, O., & Barr, A. (2012, May 17). Facebook prices at top of range in landmark IPO. Retrieved October 19, 2013 from www.reuters.com Web site: http://www.reuters.com/article/2012/05/17/us-facebook-idUSBRE84G14Q20120517
Related Documents
Study Document
Initial Public Offering for EbonyLife
1. Executive Summary
EbonyLife Network is going public on the Nigerian Stock Exchange. EbonyLife has been a private company since 2013, but has quickly risen to the top of the Nigerian entertainment market by offering top-notch entertainment, stellar streaming services, critically- and internationally-acclaimed, in-house produced films, and a variety of shows in a range of genres for all demographics. Now EbonyLife Network is giving investors the opportunity to stake a
Study Document
Initial Public Offerings
Business -- Corporate Finance -- IPO SLP Facebook, Inc. is a social networking company that engaged in a simultaneously successful and flawed IPO resulting in multiple lawsuits against the company and its underwriters. Though the IPO traded on huge volume and raised $16 billion, it also reportedly resulted in the loss of $billions to investors due to stock overvaluation and supposed mismanagement. Due to these successes and failures, Facebook, Inc.'s IPO
Study Document
Facebook Going Public
IPO Facebook's IPO Facebook, the world's leading social networking site, has recently filed to raise capital by launching an initial public offering (IPO). During this process the company will sell equity shares in the form of stocks to interested investors. There has been much hype about Facebook's IPO and it has been a long awaited event. Facebook has had an interesting history and the company's CEO has publicly stated his intentions
Study Document
IPO Facebook, a Leading Social Networking Service
IPO Facebook, a leading social networking service with users in excess of 800 million, has today grown far beyond the expectations of most right from the time it was founded. Launched sometimes in 2004 by Mark Zuckerberg and several other colleagues of his in college, Facebook has gradually become a force to recon with in the social networking field. The company is currently seeking to raise approximately $10billion from an
Study Document
Global Social Networking Company, Facebook, Inc. Has
global social networking company, Facebook, Inc. has developed the standard for an interface platform that is user friendly. Facebook's developers have fully integrated the programming for Web and mobile applications. The company continues to expand ways for Facebook users to connect, discover, communicate, and share with other users across mobile and conventional digital devices. The mobile-to-mobile messaging application is available on both Android and iOS phones, and the Facebook
Study Document
Marketing Problem at Facebook
Managerial Challenge at Facebook Marketing Problem at Facebook Application of Project Management to Facebook's Marketing Problem Project Team The Triple Constraint Gant chart of the Project Application of Operations Management to Facebook's Marketing Problem Application of Information Systems Management to Facebook's Marketing Problem Assignment of the Project Team Training Needed Work Breakdown including Critical Path Planning Budget Facebook is one of the social media platforms that has transformed modern communications and become highly successful and profitable in the process. Throughout its operations,