I can't think of a way that this thread could have started any better.

ZAZ: They're a little mature to be looking for seed funding.

My stock market knowledge can fill a post it note. I don't understand why they want an IPO, facebook is as large as it can ever be, why do they need more money? Seems like a poor stock puchase in my opinion.

I always invest in chatter.

///A fool and his money...

ZAZ: They're a little mature to be looking for seed funding.

Looks like the world agrees with you.


Link (new window)

Who is the Father of Facebook again?

stuhayes2010: ZAZ: They're a little mature to be looking for seed funding.

My stock market knowledge can fill a post it note. I don't understand why they want an IPO, facebook is as large as it can ever be, why do they need more money? Seems like a poor stock puchase in my opinion.

The kids that own it want to cash out before the company flashes in the pan.

Endive Wombat: Aside from a lot of drunken photos and pictures of people with their cats, some music listening preferences and somewhat accurate contact info, really, what value is there in the "personal" data on Facebook? I mean, if they start putting up large, flashy or intrusive ads, people will be very, very pissed off.




"The company Mark Zuckerberg started with some friends in 2004 has seen its annual revenue soar from $777 million in 2009 to $3.7 billion last year. Facebook's earnings have grown at a similar rate too, ballooning from $122 million in 2009 to $668 million last year." Link (new window)

I guess the value of that is $3.7 Billion

stuhayes2010: ZAZ: They're a little mature to be looking for seed funding.

My stock market knowledge can fill a post it note. I don't understand why they want an IPO, facebook is as large as it can ever be, why do they need more money? Seems like a poor stock puchase in my opinion.

"Why do they need more money?" It isnt about need.....please, stay out of the stock market, you obviously dont have the chops for it if you cannot understand why anyone would want to make "more" money.

Also, it isnt just the value of the personal data. FB has over 800,000,000 users. Each of those users usually can see 1 or 2 of those little square advertisements on the side. Lot of users click "Like" to get special promos on products from everything from Redbox to McDonalds to DirecTV to Procter and Gable, etc. Those people pay money to advertise on Facebook........ if you cannot see the lines forming by now.....

Just because I am not childish at all

F buddy
F bunny
Fullback
happy Fun Ball
foreign body

Endive Wombat: I guess what I am failing to grasp here is why Facebook feels like the need to go public. From what little I know about them, cash flow is not an issue. I mean, are they trying to build a massive $250M data center and don't want to shell out the cash for it? I don't get why the principles want to diminish their control over their baby.

This is pure speculation, but I'm guessing they're raising capital so they can aggressively enter other markets (outside of social media).

Most of their revenue comes from advertising, yet, it's a well known fact that their click through rate is quite poor compared to other major websites, such as Google. If they cannot improve the rate, they could lose advertisers, and thus, their revenue would drop. So the company needs to hedge and develop other revenue sources.

OK, but who is the father?

stuhayes2010: My stock market knowledge can fill a post it note. I don't understand why they want an IPO, facebook is as large as it can ever be, why do they need more money? Seems like a poor stock puchase in my opinion.

An SEC rule from 1964 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. They could stay private, but they'd have all of the burdens of being a public company, but none of the upside.

Well, they did say it was the Daddy of all IPOs.....

Endive Wombat: Call me short sided, I just do not see what market FB is going to enter. Their attempts to brake into integration in the cell phone market have been ok

They might program a spell checker...

F-flat? That's not even a real note! Around these parts, we just call it E. Haha, facebook is so stupid....

Endive Wombat: thornhill: This is pure speculation, but I'm guessing they're raising capital so they can aggressively enter other markets (outside of social media).

Most of their revenue comes from advertising, yet, it's a well known fact that their click through rate is quite poor compared to other major websites, such as Google. If they cannot improve the rate, they could lose advertisers, and thus, their revenue would drop. So the company needs to hedge and develop other revenue sources.

Maybe it is because I really do not see and believe all the hype that exists surrounding social networking advertising (and I am part of the marketing and lead generation at my company)...you know, just because my old college roommate "likes" some random brand of beer does not mean that I am gonna hop in the car and buy it immediately.

Call me short sided sighted, I just do not see what market FB is going to enter. Their attempts to brake into integration in the cell phone market have been ok, some of their endeavors have been abysmal (new window).

Now, if the principles are simply trying to offload a chunk of their ownership for cash because they know the momentum of their growth is not exponential, well...can you blame them?

You're welcome.

Endive Wombat: Call me short sided, I just do not see what market FB is going to enter. Their attempts to brake into integration in the cell phone market have been ok, some of their endeavors have been abysmal (new window).

They could do something completely new and different. Look at how Apple got into the music and cell phone businesses, or how Google has expanded from being a search engine into developing operating system software, video, etc.

It would be foolish for FB to assume it can perpetuate themselves on doing the same thing year after year. That's what Microsoft did, and now they lag behind Apple.

My guess is that after the IPO, they'll take the cash and just start buying up tons of companies.

And there's always ZUCK.

Similar to my first pick but starts with a different letter.

Gotta love web companies whose only income is derived from advertising.

*hugs adblock*

eagerly awaits for adblocking software to be more universally installed and the whole internets house of cards to come crashing down

stuhayes2010: ZAZ: They're a little mature to be looking for seed funding.

My stock market knowledge can fill a post it note. I don't understand why they want an IPO, facebook is as large as it can ever be, why do they need more money? Seems like a poor stock puchase in my opinion.

Same reason as Microsoft. The SEC makes private companies with a certain number of shareholders file the same reports that public companies file, and frowns upon activities that look like trading (even when between employees), so the costs will be the same, and the company or founders usually gets a big payday, extra promotion, and has a new currency that can be used in acquisitions.

Why Would I Read the Article: F-flat? That's not even a real note! Around these parts, we just call it E. Haha, facebook is so stupid....

Winner, winner, chicken dinner.

pounddawg: OK, but who is the father?

+1, brother.

In my opinion, Fb has definitely peaked. And anyone who buys stock at release is probably going to get hosed. Sure, it's possible that they could branch out and make this 100Billion dollar worth estimate more of a reality, but I'd wager it's going to be a cash-out. The powers that be will sell off their stock over the next year and exit to do new things.

That's my guess, but I've been wrong before.

It should be "FBI", considering the CIA's venture capital fund has been bankrolling FB for years.

Zuckerberg is basically a frontman for the CIA.

Its funny, people get all offended and indignant when a US census worker comes to their house and asks them how many people live in the residence. "How DARE you ask me that, that's private!"

But then they go back into their living room and post on facebook about the color of the tvrd they just took.

MrBigglesworth: Also, it isnt just the value of the personal data. FB has over 800,000,000 users. Each of those users usually can see 1 or 2 of those little square advertisements on the side. Lot of users click "Like" to get special promos on products from everything from Redbox to McDonalds to DirecTV to Procter and Gable, etc. Those people pay money to advertise on Facebook........ if you cannot see the lines forming by now.....

Psht... the money FB gets from advertising is going to be peanuts compared to what it's getting from it's users. I would like to introduce exhibit A: a screen shot from my wifes bank account. She plays Monsterville... or something like that. The funny part is that she didn't even know it was costing her a dime until I pointed it out to her. She was oblivious, and she's not stupid. (I know, that's debatable) The point being, I can only imagine how much FB is raking in from the other 800 million users that are being separated from small amounts of cash while being distracted by a game. Do the math. One could presume that the billions they get from their IPO will go towards developing more games and expanding. I'm sure they'll also need to buy out Renren and Quepasa as well.

Dr J Zoidberg: That's a grammatical error, not a spelling error, genius

No, they're spelling errors. Even though the misspelled word happens to also be a valid spelling for a different word, it's still a misspelling.

Isn't still some kind of filterization shenannigans on Fark?

Lt. Cheese Weasel: Isn't still some kind of filterization shenannigans on Fark?

Yep! It is! Haha!

Lt. Cheese Weasel: Lt. Cheese Weasel: Isn't still some kind of filterization shenannigans on Fark?

Yep! It is! Haha!

You mean when talking about how ?