Facebook IPO
Everybody is talking about the Facebook IPO set to go out in the next few months. Recently a 150 page report was released on the alleged $100 billion IPO and its the most read piece of material since the Steve Job’s biography by Walter Isaacson. In case you just didn’t have time to read through the Facebook IPO papers, we want to share the highlights with you including some astonishing statistics, just how much control Zuckerberg has, and salaries for the major executives within the company.
Facebook IPO | Revenue
So just how much revenue does Facebook pull in on a year to year basis and where exactly does it come from? We have ran across a recent article from PC World on the Facebook IPO and just how much money they pull in from both advertising and gaming.
Facebook has been busy making money in recent years and growing fast. In 2009, the company said it brought in $777 million in revenue. That figure grew to $1.974 billion in 2010, and then almost doubled in 2011 when the company had $3.71 billion in revenue and $1 billion in profit.
The S-1 filing also shows that digital cows, crops, and mafia hit jobs are a big source of revenue for the company; social game maker Zynga was responsible for about 12 percent of Facebook’s revenue in 2011.
Thats surprising to hear that so much of Facebook’s revenue is from the guys at Zynga, however with annoying requests pouring into my account daily from Farmville I can see how its possible.
Facebook IPO | The Execs Make Much More Than You
Also included in the Facebook IPO are the salaries of some of Facebook’s top execs, including of course, Mark Zuckerberg. The salaries of these execs will send you crying to your boss for a raise, here’s the top salaries from PC Mag:
- Sheryl Sandberg, Facebook’s Chief Operating Officer: $300,000 in salary and more than $86,000 in bonuses, but the approximately $30.5 million in stock awards put her total 2011 compensation at $30.8 million.
- Engineering Vice President Mike Schroepfer: $24.7 million last year, $24.3 million in stock awards
- CFO David A. Ebersman: $18.6 million
- General Counsel Theodore W. Ullyot: $6.9 million
Drum roll please…Mark Zuckerberg’s salary revealed in the Facebook IPO: about $1.5 million in salary, bonus, and other compensation. But that’s pocket change compared to his stock holdings. The social network’s founder owns 533.8 million shares, or 28.4 percent, of Facebook stock. With a potential valuation up to $100 billion, that could make Zuckerberg worth about $28.4 billion.
http://www.pcmag.com/article2/0,2817,2399731,00.asp
Mark Zuckerberg apparently spent over $700,000 just flying around in a private jet alone. Zuckerberg will also still be the head of the company even after the IPO, and if he stays head of the company until death, he will have the rights to hand select his successor.
Facebook IPO | Final Note from Mr. Zuckerberg
A lot of folks are wondering just what direction Facebook is heading in and what their plans for profitability are after the Facebook IPO, in this final quote from Zuckerberg he explains it all:
Mr. Zuckerberg—who has long eschewed the business side of Facebook—said he plans to continue focusing on building products, rather than sales growth. “We don’t build services to make money; we make money to build better services,” Mr. Zuckerberg wrote. “These days I think more and more people want to use services from companies that believe in something beyond simply maximizing profits.”
http://online.wsj.com/article/SB10001424052970204879004577110780078310366.html
We will continue coverage on the Facebook IPO, so make us your new source for social media news. We want your opinion. How do you think Facebook will change after the Facebook IPO? Let us know!
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