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Company is estimated to be worth around $107B USD, including unexercised share options

Facebook -- the world's most used website and the largest social network in the world -- is on the eve of its initial public offering of stock.

The price of shares -- $38 USD -- was just announced.  That places Facebook's tenative market capitalization at $81B USD, more than some expected.  Combined with executives unexercised share options, the company's total valuation appears to be around $107B USD, according to experts.  That's notably a higher valuation than the world's top online retailer, Amazon.com, Inc. (AMZN) who "only" has a current market cap of $98.4B USD.

The IPO will raise $16B USD, based on the announced share price.  The IPO is the third largest in U.S. history, behind only Visa Inc.'s (V) 2008 offering of $19.7B USD in stock and General Motors, Inc.'s (GM) $18.1B USD post-bankruptcy stock offering.

Shares will trade under the symbol "FB".  It is unlikely that many shares will reach the hands of small independent traders; the IPO is underwritten by finance house Morgan Stanley (MS) and most shares will go to large institutional investors, mutual funds and hedge funds.  This is different from other top tech IPOs of the past, such as Google, Inc. (GOOG) who sold directly to individual investors via a "Dutch auction" process.

The expected offering date is May 18, pending approval by the U.S. Securities and Exchange Commission.

The stock offering is destined to transform Facebook's early investors and founding members into multi-millionaires, if not billionaires.  Facebook's co-founder has reportedly abandoned his U.S. citizenship in order to avoid paying much of the taxes on the windfall that will be coming his way.  Iconic co-founder Mark Zuckerberg remains a U.S. citizen and has pledged to give away his fortune to charity when he dies, as suggested by his mentor, Bill Gates.

Facebook is a company of much controversy and potential.  Some believe it could increase profits by a substantial multiplier if it jumped into the online payments business as a competitor to eBay, Inc.'s (EBAY) Paypal service.  However, concerns over privacy and censorship remain active discussions and may make some investors cautious of diving in to the Facebook stock.

Source: CNN Money



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RE: Charity
By EricMartello on 5/18/2012 10:17:51 PM , Rating: 1
No, I'd rather just let nature run its course and let them die off. The ones who are motivated to do something FOR THEMSELVES can survive and I'd be happy to help them.

The rest of them who are too dead-set in their ways or are otherwise unwilling to pull their own weight don't need to be populating the earth.

We have plenty of humans on Earth; we're not an endangered species and I'd rather preserve the resources of this planet for people that are actually going to give back rather than just take.

Donating to charity usually results in a large portion of that money going to overpay some non-profit execs a 6-figure salary while the rest is food and drug handouts - a lot of which is seized by warlords/gangs.

Rich people giving away their fortunes is just something they do to feel good about themselves. Malaria, cancer and other diseases exist to keep the human population in check...cure one and a few more will pop up.

Point is there are better things to do with a large cache of money than to give it away to charity.


"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook














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