$5 Billion! Facebook Files to Go Public

Paperwork submitted today makes Facebook's IPO the largest in Silicon Valley history.

After months of speculation, hype and analysis, the venerable social networking giant Facebook today filed to go public.

Seeking $5 billion in shares with and 'FB' as a stock ticker, the company, started by Mark Zuckerberg in a Harvard dorm, is likely to give a much-needed economic boost to Silicon Valley and the State of California in general.

Morgan Stanley, which brokered the deal, fought off an attempt by four other major bookrunners to do the same.

When the deal is done, it will reportedly enrich more than 1,000 employees with stock assets of $1 million or more.

Employees are Facebook's largest shareholders. Zuckerberg is the second-largest, and .

In an letter attached to the IPO paperwork, Zuckerberg said that Facebook's roots are in a desire to interconnect humanity, not start a business.

"Facebook was not originally created to be a company," said Zuckerberg. "It was built to accomplish a social mission — to make the world more open and connected."

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Mark Weiss February 06, 2012 at 09:27 PM
I am on it only in the proverbially sense on being critical of it. In terms of Mr. Brina's comment, my mention of the leading local law firm is perhaps a red herring in that I was referring to an article in the Chronicle I clipped a few months back that said said firm was lobbying to get a tax break for its clients, as part of the trillions of offshore profits that U.S. corporations are seeking a safe harbor and a deal on bringing home. This is a related article, on the problem (which is not necessarily the same problem as the bubble of severely over-valued high tech and social media stocks, or this one IPO). I am happy in a certain restrained way for David Choe, a visual artist I met at their original headquarters, above Jing Jing on Emerson; he painted a mural one night and apparently was offered a choice between cash and what became a reported $200 milion in stock, if this goes through. I bought a calendar of his work for $20 that night. Maybe if it wasn't for me and pocket change he might have gone for the cash from MZ. I held a sign at MoveOn's "Occupy" protest here that said "1Q84" in reference to the novel. I am like the dude blowing the shofar to confuse Satan.
Mark Weiss February 06, 2012 at 09:27 PM
Mark Weiss February 08, 2012 at 04:00 PM
Not to cross a red herring with another red herring, but according to Frances Dinkelspiel (who was Warren Hellman's cousin) in the Jan. 28 WSJ -- and I got this from BrandChron's gossip monger the lovely and musical Leah Garchik -- the Occupy people might be picketed the Point One Per Cents here in PA at 428 Uni, home of evil too-much-fun, stealing T.J. Rodgers' wine-lines Accel Partners: http://online.wsj.com/article/SB10001424052970203806504577178870293440152.html
Mark Weiss February 08, 2012 at 04:14 PM
The T.J. Rodgers reference is about the fact that in San Jose Mercury's reporting of the October, 1987 stock market (Black Monday -- lost 23 percent of value) correction, CEO Rodgers said, paraphrasing, it won't change the type of wine I drink. Motley Fool, although it does not corroborate my anecdote, gives a great recap of those 1987 events: http://www.fool.com/features/1997/sp971017crashanniversary1987timeline.htm I guess I am saying whatever happens with the IPO it might take 20 years to sort it out. If Facebook is not over-valued, then at least grant me that Intel, Apple, chips, hardware et al are under-valued. How's that?
Lisa LaMagna February 08, 2012 at 05:05 PM
To your point that Intel, Apple, Chips, Hardware are all undervalued: Google gets $25/user in revenue, Facebook gets $3/user in revenue. Apple is trading 8x ebitda, Google 10x, Intel 5x, so relative to FB they are screaming buys. Question for equity investors is, "Where is FB in the hype curve?" Will be an interesting ride.


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