Facebook shoots for $5 billion in mega-IPO

Television cameramen walk away from a sign standing in front of the Facebook headquarters.

Facebook filed on Wednesday to raise a targeted $5 billion in a hotly anticipated initial public offering, setting the stage for Silicon Valley’s biggest-ever IPO.

The world’s largest social network, a dorm room project for Harvard dropout Mark Zuckerberg that exploded in popularity and vaulted to Silicon Valley’s top tier within 8 years, said in its preliminary filing that its net income rose 65 percent to $1 billion in 2011, off revenue of $3.71 billion.

The long-awaited submission kicks off a months-long process that will culminate in Silicon Valley’s biggest coming-out party since the heyday of the dotcom boom and bust.

Facebook, which said it now has 845 million active users, appointed Morgan Stanley, Goldman Sachs and JPMorgan its lead underwriters. Other bookrunners included Bank of America Merrill Lynch, Barclays Capital and Allen & Co.

“We often talk about inventions like the printing press and the television,” Zuckerberg said in a letter accompanying the documents. “Today, our society has reached another tipping point.”

“There is a huge need and a huge opportunity to get everyone in the world connected, to give everyone a voice and to help transform society for the future,” said Zuckerberg, whose $500,000 base salary will drop to a dollar from January1 2013.

“The scale of the technology and infrastructure that must be built is unprecedented.”

Facebook had previously been expected to raise $10 billion in what would have been the fourth-largest IPO in U.S. history, after Visa Inc, General Motors, and AT&T Wireless, according to Thomson Reuters data.

As expected, the prospectus underscored how the lion’s share of Facebook’s revenue, 85 percent, was derived from advertising in 2011. Last year, social-gaming company Zynga, the creator of Farmville, accounted for 12 percent of Facebook’s revenue.



News
Entertainment
Sports
Lifestyle
National

US military tried, but failed to rescue journalist…

The U.S. military earlier this year tried to rescue journalist James Foley and other American hostages held in Syria ,but failed to find the captives.

National

Fate of captured beluga whales in hands of…

A Georgia aquarium went to court on Wednesday seeking federal permission to bring 18 captured beluga whales to the United States from Russia.

Local

After Eric Garner death, religious leaders meet to…

Interfaith leaders convened with city officials to discuss what the community can do to help dial down heightened tensions after Eric Garner's death.

Local

'Suspicious' Hamilton Heights fire caused by power strip:…

An extension cord overload caused the deadly fire in Hamilton Heights late Monday that killed a 15-year-old girl and injured at least 12 others.

Television

'So You Think You Can Dance' recap: Season…

And then there were six. It was a big night on stage as the Top 6 got to dance with each other, All-star partners and perform a solo routine.

Going Out

5 things to do in NYC this weekend…

FILM Lebowski Fest Aug. 22-23, 8 p.m. Various locations, Manhattan $20-$30, www.lebowskifest.com The Dude abides — for 48 hours to celebrate the 1998 Coen brothers classic.…

Television

'Doctor Who' personality profile: the 4 Doctors

When the time comes for a new Doctor, there's always some anxiety over the big question: Who will he be? The series owes its longevity…

Television

Billy Crystal to commemorate late actor Robin Williams…

  Comedian Billy Crystal will pay tribute to late actor Robin Williams at television's Primetime Emmy Awards on Aug. 25, the show's organizers said on…

NFL

Giants expected to work Corey Washington into first-team…

The day of reckoning for the Giants' fringe players will fall upon them Friday night against the Jets.

NFL

Jalen Saunders still unsure what caused car accident…

Jets rookie wide receiver Jalen Saunders spoke to the media Wednesday for the first time since his car accident, but he didn't say a whole lot.

NFL

2014 Fantasy Football: Rankings, list of top NFL…

2014 Fantasy Football: Rankings, list of top NFL defense (DEF)

NFL

2014 Fantasy Football: Rankings, list of top NFL…

2014 Fantasy Football: Rankings, list of top NFL quarterbacks (QB)

Sex

Online dating for every generation

Frank Jackson and his mother Maggie are like lots of modern families: They have dinner together regularly, keep each other updated on their lives —…

Wellbeing

Going green could be the key to getting…

If we could just pursue the things that would actually make us happy, we could help the environment too, according to a New York researcher.…

Wellbeing

Metabolic syndrome could have a sugar link

Scientists in St. Louis may have found another culprit in metabolic syndrome, which can lead to heart disease and type 2 diabetes.  Uric acid is…

Wellbeing

Another way stress hurts your unborn baby

Mothers know to try staying calm during pregnancy, as stress has been linked to behavioral and developmental problems for their babies. But now, a new…