Google IPO Price Drops by Over 25% In a press release posted today on the official Google IPO Web site, the company stated that they would be filing an amendment to their prospectus in order to drop the expected share price of the stock for this week's IPO. The previous target range of $108-$135 has been abandoned in favor of a new range of $85-$95 per share. Google still plans to sell over 14 million shares of Class A stock in the offering, but now expects shareholders to sell an estimated 5.5 million shares, a drop from the previous estimation of almost 12 million. With fewer shares on the market and a lowered share price, Google's valuation has now dropped from a high of more than $36 billion down to just under $26 billion.
The lower price has also prompted several top Google executives, including co-founders Larry Page and Sergey Brin, to cut the number of shares they plan to sell in half. The drop in share price does not come unexpectedly. BW Online | July 27, 2004 | Google's IPO: Asking Too Much? By Ben Elgin Audacity has never been in short supply at Google. After revolutionizing Internet searches and revitalizing Web-based e-mail by promising free, mammoth-size accounts, Google thumbed its nose at Wall Street's fat cats and demanded an auction to equitably sell shares in its upcoming public offering.
Now, Google is at it again, on July 26 setting a ballpark price for the stock that some experts deem a stretch. Google says its 26.4 million shares will likely cost between $108 and $135 apiece, according to a pre-IPO filing with the Securities & Exchange Commission. That would put Google's valuation between $29 billion and $36 billion, just shy of the $38 billion market cap of competitor Yahoo! (YHOO ). Taking the midpoint of Google's valuation range, the search giant would be trading at 40 times 2005 earnings, vs. 42 times earnings for Yahoo, according to projections by Susquehanna Financial Group analyst Marianne Wolk.
SIGHT AND SOUND. CHANGE OF DIRECTION. Facebook’s Revenue Jumps, But Profit Slips - Deal Journal. Facebook’s first quarter of 2012 continued the social-network’s rapid revenue growth pattern. Yet profit slipped as the company’s soaring revenue came with soaring costs. European Pressphoto Agency According to a newly updated initial public offering filing, revenue in the first three months of the year rose 45% to $1.06 billion in the quarter. Advertising revenue was up 37% and payments and other fees rose 98%. Facebook credited the increased revenue as a result of continued growth in monthly active users, up 33%, and daily active users, up 41% to 526 million. Total monthly active users is now at 901 million. But profit during the quarter dropped 12% to $205 million from $233 million a year earlier.
Costs of revenue rose, as did sales and marketing expenses, and there was a huge jump in research and development, which was impacted by share-based compensation. Facebook is as big as Europe, but how does it stack up against prior tech IPOs? We already knew Facebook was huge, but did you realize it has as many monthly active users are there are people in Europe? The company is headed toward an IPO, but where does it stack up against the tech titans that came before it? The company has been on its roadshow since earlier this week, talking to bankers about potentially investing in the company’s available shares. Facebook is expected to be valued at around $100 billion when it makes its stock market debut, making it one of the biggest Internet IPOs in U.S. history. With total revenue for 2011 sitting at $3.7 billion, it is almost a mouse in Google’s $37.9 billion 2011 revenue shadow. Conversation around the IPO has also been deceiving.
Here in Silicon Valley, it seems to be the only thing anyone’s talking about when Facebook comes into the conversation. But of the 66 million people mentioning Facebook on the Internet, less than one percent of those conversations have to do with the impending IPO. The one amazing revenue stream that will help Facebook eclipse Google. I've been watching all the heightened chatter about Facebook in the last couple of weeks as they approach their IPO and laughing at all the wild speculation. They are not worth the money. The are oversubscribed. Mobile will screw them. Mobile is their only focus.
All the stories are only about pageviews and all sorts of people without any real knowledge of the biggest social network are speculating wildly. Funnily enough, I remember the Google IPO and the media coverage was exactly the same: Wild! While there are concerns about Facebook's mobile strategy - and those concerns are very real - there is a little too much hyperbole going around at the moment. Facebook Is The Internet When I go online, I do so mostly through Facebook these days. Web Ad Formats Are Broken Banner ad click through rates are in the toilet. Playing The IPO Poker Game The New Cash Cow You might forgive my rather crude mock up but it hopefully gets the point across.
LIVE: FACEBOOK'S IPO FILING IS HERE. Facebook sets $28-35 price range for IPO, valuing company at up to $96B. Facebook sets $28-35 price range for IPO, valuing company at up to $96B Facebook today set the price range for its initial public offering at $28 to $35 per share, which would lead the company to raise between $5 billion and $6.3 billion, at a valuation up to $96 billion, according to an updated S-1 filing with the Securities and Exchange Commission. This would make Facebook’s the largest IPO of any tech company. Google was valued at $23 billion went it went public in 2004. Facebook estimates net proceeds of about $5.6 billion, assuming an initial public offering price of $31.50 per share, –the midpoint of the price range — and after deducting underwriting discounts, commissions and estimated offering expenses.
Facebook says 180 million of the shares in its offering would come from the company itself. According to Fortune, it is unusual that Facebook set such a wide range for its filing. Facebook also released its retail roadshow video here. Sponsored Post. Facebook expected to raise IPO range to $34-$38 a share - May. 14.
Facebook IPO Likely to File Later Today at Earliest - Kara Swisher. Like political junkies waiting up for election returns (losers!) , Silicon Valley folks, including tech journalists (losers!) , are up this morning to await and then pounce on the long-expected IPO filing of Facebook. But, several sources said, the social networking giant — as I have previously reported — will likely not file its copious documents until this afternoon, after the markets close, at the earliest. In other words, my day is shot.
Sources said the filing could even possibly slip a day, as the company’s suits get busy with dotting all the I’s and crossing the T’s. High-Tech : Facebook à l'épreuve de Wall Street. Après la clôture de Wall Street mercredi soir, Facebook a lancé son très attendu processus d'entrée en Bourse, en déposant son dossier d'introduction. La firme américaine compte lever environ 5 milliards de dollars. Le réseau social serait valorisé entre 75 et 100 milliards de dollars. Avec de tels chiffres, Facebook serait la plus grosse introduction en Bourse d'un service Internet et une nouvelle occasion de réveiller le spectre de la bulle Internet. Car nombre d'observateurs se demandent encore si Facebook subira le même sort que MySpace.
Comme s'il y avait une fatalité au déclin des réseaux sociaux. L'histoire leur a jusqu'ici donné raison. Le site réunit une audience unique au monde. 845 millions d'internautes sont actifs tous les mois sur Facebook, la moitié d'entre eux y viennent tous les jours. Achat de talents Ce nouveau profil témoigne d'un savoir-faire et d'une particularité de Facebook: depuis son lancement, le service n'a cessé de changer sa page d'accueil et son profil.
The Facebook IPO Players Club: Reid Hoffman. Who he is: Reid Hoffman is probably best known to you and me not as an early-stage investor in Facebook, but as cofounder and Executive Chairman of LinkedIn--the social network for, you know, professional types (less FarmVille, more tiepins). He's considered one of the "PayPal mafia," thanks to his previous EVP status there.
Demonstrating both tech-savviness and more ephemeral intellectual prowess, perhaps ideal for recognizing the value of Facebook in its early moments, Hoffman has a Bachelor of Science in Symbolic Systems and Cognitive science from Stanford, and a BA in philosophy earned at Oxford. He also personally invested in Zynga and joined its board of directors and co-owns its Six Degrees patent.
There's no answer to the Quora question "What's it like working for Reid Hoffman? " What's his connection with Facebook: He's credited with arranging to bring Peter Thiel aboard as the first investor, arranging the meeting with Zuckerberg. Facebook’s IPO will create over 1,000 millionaires. Facebook is planning an initial public offering (IPO) for next year, meaning the company will go public in Q1 2012, Q2 2012, or even later, depending on which rumor and sources you want to believe. Assuming the social networking giant raises the expected $10 billion or so, giving it a valuation of around $100 billion (give or take a few pennies), it will create more than 1,000 new millionaires. Reuters interviewed a few Facebook employees to find out what they were planning to do with their riches. One answer was to pay $200,000 (of an expected $50 million payout) to travel to space. Another was to embark on an expedition to excavate lost Mayan ruins. Many will likely retire, some will go try to build their own startups, and a few will go fund other startups.
Zuckerberg has frequently stated, both publicly and privately, that he is against the idea of rushing the company into an IPO. Facebook doesn't need to push for an IPO because it really doesn't need the money right now. A Facebook Founder Renounces His U.S. Citizenship. Zynga shares soar after Facebook IPO | Technology. Shares in the social games firm Zynga have soared after Facebook revealed in its $5bn initial public offering filing that the Farmville maker accounts for up to 12% of its total revenue. Investor appetite in Zynga peaked in early trading on Thursday, sending the company's shares price soaring 16% to $12.60 – the highest it has been since it went public in December. Virtual goods, bought through hugely popular Zynga games such as CityVille or Mafia Wars, accounted for 12% ($445m) of Facebook's $3.71bn revenue for 2011, according to documents filed by the social network with the US financial regulator, the Securities and Exchange Commission, late on Wednesday.
FarmVille, one of the most popular games on Facebook, allows users to harvest a virtual farm by planting and growing crops, trees and livestock. New gamers are given virtual coins to set up their farm, and revenue from matured crops can be used to maintain it. Morgan Stanley Discloses Stakes in LinkedIn, Zynga. Facebook's Goal: To Be a Blue Chip.