Welcome!

CRM Authors: Xenia von Wedel, Ian Khan, PR.com Newswire, Steve Mordue

Related Topics: Agile Computing, Microservices Expo, @CloudExpo, CRM

Agile Computing: Article

Facebook’s Pied Piper IPO Supposedly Priced at $28-$35

Pricing never happens until the night before an IPO

The great Facebook IPO is supposed to happen on Friday May 18.

The company's big investor-pitching pre-IPO roadshow is supposed to kick off this Monday and only see some appearances by Facebook founder Mark Zuckerberg, according to the Wall Street Journal. CFO David Ebersman and COO Sheryl Sandberg will reportedly handle the bulk of the meetings. Initial East Coast meetings are supposed to be stuffed to the gills. But you can see the video now (http://facebook.retailroadshow.com/launch.html).

Real pricing never happens until the night before an IPO. But it claimed in a regulatory filing late Thursday that it's shooting for $28-$35 a share, a relatively broad range that values the joint at $96 billion under the magical $100 billion, leading the smart money to think it and its underwriters are aiming for a pop.

There'll be at least 337.4 million shares on offer. And there might be an overallotment. There will be class A and B stock after the IPO.

Early investors like Accel, Goldman Sachs, Russia's Digital Sky Technology and Microsoft are going to be selling some of 1547.4 million shares to Google's 180 million.

Mark Zuckerberg, who's about to turn 28, could be worth $16 billion-$19 billion and gets to keep 58% control over his creation according to promises made about voting. He'll only own 31.5% after the IPO. He himself has to sell 30.2 million of his 533.8 million shares to pay a whopping tax bill to cover his exercising stock options.

Figure he'll take home $5.5 billion.

Facebook itself is only likely to see about $5.6 billion.

Yahoo has tried to crimp Facebook's style by suing it for patent infringement - which is how Yahoo got a pre-IPO settlement out of Google - and now the Journal writes that national advertisers are having doubts about the effectiveness of ads on social media sites, leaving bankers to fret over their fashionable appraisals.

Facebook's Q1 revenues were up 37% year-over-year to $872 million but down 7.5% sequentially. It blamed "seasonal trends." Total revenue last year was $3.7 billion, up 88%.

Google, which is worth close to $200 billion, did $36.5 billion in ad revenue last year. It raised a mere $1.9 billion when it IPO'd in 2004 at valuation of ~$23 billion.

Its Nasdaq ticker symbol will be FB.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by ...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
DXWorldEXPO LLC announced today that Big Data Federation to Exhibit at the 22nd International CloudEXPO, colocated with DevOpsSUMMIT and DXWorldEXPO, November 12-13, 2018 in New York City. Big Data Federation, Inc. develops and applies artificial intelligence to predict financial and economic events that matter. The company uncovers patterns and precise drivers of performance and outcomes with the aid of machine-learning algorithms, big data, and fundamental analysis. Their products are deployed...
The challenges of aggregating data from consumer-oriented devices, such as wearable technologies and smart thermostats, are fairly well-understood. However, there are a new set of challenges for IoT devices that generate megabytes or gigabytes of data per second. Certainly, the infrastructure will have to change, as those volumes of data will likely overwhelm the available bandwidth for aggregating the data into a central repository. Ochandarena discusses a whole new way to think about your next...
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Cell networks have the advantage of long-range communications, reaching an estimated 90% of the world. But cell networks such as 2G, 3G and LTE consume lots of power and were designed for connecting people. They are not optimized for low- or battery-powered devices or for IoT applications with infrequently transmitted data. Cell IoT modules that support narrow-band IoT and 4G cell networks will enable cell connectivity, device management, and app enablement for low-power wide-area network IoT. B...
The hierarchical architecture that distributes "compute" within the network specially at the edge can enable new services by harnessing emerging technologies. But Edge-Compute comes at increased cost that needs to be managed and potentially augmented by creative architecture solutions as there will always a catching-up with the capacity demands. Processing power in smartphones has enhanced YoY and there is increasingly spare compute capacity that can be potentially pooled. Uber has successfully ...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...