Wednesday, February 1, 2012

FACEBOOK FILES FOR IPO

FACEBOOK

The MOST anticipated IPO in the History of tech startups files to go IPO.  Yes, finally Facebook files for IPO and plans to raise $5 Billion.  With 845 Million Active Users it is mind boggling when we think about the potential it has to create Worlds Biggest Company.  Mark Zukerberg would be worth about $28 Billion with this IPO and in the process would create about 1000 Millionaires out of Facebook which is 1/3rd of its 4000+ employees.  According to the filing the latest earnings are not very impressive but I tend to think that this will all change pretty soon when Facebook starts sharing more and more information it already knows about these 800+ Million users all around the world and start bombarding with targeted advertisements.  All of a sudden other traditional / non-traditional advertising medium is obsolete.  Yes, this is highly Disruptive as many companies will be shut down due to Facebook and many like Zinga and Spotify would make fortunes.  When Google went public at $85 (700% Return as of today) they had similar highly Disruptive technology and critics questioned about how in the world are they going to make money.  Here we are a decade later and Google has more than 1 Billion active users and a market cap of $188 Billion as of today.  It pretty much killed most of the traditional advertising medium.  And here comes Facebook to challenge Google.  It's going to be super interesting as I think Facebook has an upper hand on capitalizing on their user base by targeting highly specific ads.  Time for Facebook to make money on all of our "LIKES". YIKES!

Morgan Stanley, Goldman Sachs, & JP Morgan are the lead underwriters,
Here is the SEC Filing,


If you get a chance to get in on the IPO, then Good Luck to you.  Me, I will have to figure out an alternative strategy.

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