This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

FACEBOOK FILES FOR IPO (Update 1)

Updated from 5:09 p.m. ET to include additional information from the filing.

MENLO PARK, Calif. ( TheStreet) -- Facebook finally filed to go public on Wednesday with the social networking giant seeking to raise $5 billion in what would be the largest-ever tech IPO.

The 202-page S-1 filing reveals that Morgan Stanley (MS - Get Report) will be the lead underwriter for the Facebook IPO, with Goldman Sachs (GS - Get Report) , Barclays Capital (BCS), Bank of America Merrill Lynch (BAC), J.P. Morgan (JPM - Get Report) and Allen & Company all involved.

Facebook brought in revenue of $3.711 billion in 2011, up from $1.974 billion in 2010 and $777 million in 2009. Social gaming giant Zynga (ZNGA) accounted for 12% of the company's revenue in 2011.

The company warned though that it expects its growth rates to decline in the future. "Our user growth and revenue growth rates will inevitably slow as we achieve higher market penetration rates, as our revenue increases to higher levels, and as we experience increased competition," Facebook said, in its S-1.

Facebook currently has 845 million users, according to the filing, and has $3.9 billion in cash and cash equivalents.

"We are in the early days of pursuing our mission to make the world more open and connected," explained Facebook, in the filing. "Advertising on the social web is a significant market opportunity that is still emerging and evolving. We believe that most advertisers are still learning and experimenting with the best ways to leverage Facebook to create more social and valuable ads."

The company's CEO Mark Zuckerberg received total compensation of around $1.5 million in 2011.

-- Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GS $197.99 0.00%
JPM $62.60 0.00%
MS $37.36 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs