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
The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get tailored market studies; and more.
After years of investments and acquisitions, CloudBlue was created with the goal of building the world's only hyperscale digital platform with an increasingly infinite ecosystem and proven go-to-market services. The result? An unmatched platform that helps customers streamline cloud operations, save time and money, and revolutionize their businesses overnight. Today, the platform operates in more than 45 countries and powers more than 200 of the world's largest cloud marketplaces, managing mo...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
When Enterprises started adopting Hadoop-based Big Data environments over the last ten years, they were mainly on-premise deployments. Organizations would spin up and manage large Hadoop clusters, where they would funnel exabytes or petabytes of unstructured data.However, over the last few years the economics of maintaining this enormous infrastructure compared with the elastic scalability of viable cloud options has changed this equation. The growth of cloud storage, cloud-managed big data e...
Your applications have evolved, your computing needs are changing, and your servers have become more and more dense. But your data center hasn't changed so you can't get the benefits of cheaper, better, smaller, faster... until now. Colovore is Silicon Valley's premier provider of high-density colocation solutions that are a perfect fit for companies operating modern, high-performance hardware. No other Bay Area colo provider can match our density, operating efficiency, and ease of scalability.
ScaleMP is the leader in virtualization for in-memory high-end computing, providing higher performance and lower total cost of ownership as compared with traditional shared-memory systems. The company's innovative Versatile SMP (vSMP) architecture aggregates multiple x86 systems into a single virtual x86 system, delivering an industry-standard, high-end shared-memory computer. Using software to replace custom hardware and components, ScaleMP offers a new, revolutionary computing paradigm. vSMP F...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
As you know, enterprise IT conversation over the past year have often centered upon the open-source Kubernetes container orchestration system. In fact, Kubernetes has emerged as the key technology -- and even primary platform -- of cloud migrations for a wide variety of organizations. Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility. As they do so, IT professionals are also embr...
Atmosera delivers modern cloud services that maximize the advantages of cloud-based infrastructures. Offering private, hybrid, and public cloud solutions, Atmosera works closely with customers to engineer, deploy, and operate cloud architectures with advanced services that deliver strategic business outcomes. Atmosera's expertise simplifies the process of cloud transformation and our 20+ years of experience managing complex IT environments provides our customers with the confidence and trust tha...
As you know, enterprise IT conversation over the past year have often centered upon the open-source Kubernetes container orchestration system. In fact, Kubernetes has emerged as the key technology -- and even primary platform -- of cloud migrations for a wide variety of organizations. Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility. As they do so, IT professionals are also embr...