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

Top 10 most hipster college campuses

Hipsters are everywhere these days. You can't walk down the anywhere anymore without seeing a pair of skinny jeans on a handlebar mustachioed 20-something, a…

National

New Apple iPhone to have 'mobile wallet' function:…

(Reuters) - Apple Inc plans to enable its next iPhone to become a mobile wallet by allowing owners to securely make mobile payments in a…

Money

Second Shift: Balancing school, work and a side…

See how a Brooklynite balances getting her PhD while working two other jobs.

Local

NYPD: Early morning shootings reported along West Indian…

Several shootings were reported in the early morning hours before the West Indian Day Parade, according to the NYPD. A 55-year-old man was shot and…

Entertainment

Where to place the blame in a nude…

When a celebrity's private photos are leaked online, it's easy to jump to the conclusion that they only have themselves to blame, since they took…

Gossip

Security expert weighs in on 'The Fappening' and…

We speak to Rik Ferguson, vice president of security firm Security Research at Trend Micro, about the hundreds of hacked celebrity photos that leaked.

Gossip

Who is Ashlee Simpson’s new husband anyway?

Find out five things about Ashlee Simpson's new husband, Evan Ross.

Entertainment

Jennifer Lawrence and more: The big names on…

The names of more than 100 famous actresses, musicians and athletes were included in a list of purported hacking victims, nude photos of whom were…

NFL

Odell Beckham still 'weeks away,' Tom Coughlin angry…

Giants head coach Tom Coughlin has fought a losing battle against the media all preseason over the status of wide receiver Odell Beckham Jr.

NFL

3 things we learned in the Giants preseason…

The final score didn’t matter — a 16-13 win by the Giants — but it would’ve been nice to finally see Big Blue’s new-look offense get on track.

NFL

NFL Power Rankings: Seahawks, Broncos, Patriots, 49ers start…

NFL Power Rankings: Seahawks, Broncos, Patriots start at top

U.S. Soccer

5 facts about new England captain Wayne Rooney

Manchester United striker Wayne Rooney was named as the new England captain by coach Roy Hodgson on Thursday.

Travel

10 free apps to make traveling easier

Finding the nearest bathroom, calculating currency exchanges and locating your departure gate must have been difficult for travelers of previous generations. But we wouldn't know,…

Travel

How to get a seat upgrade to business…

It used to be much easier to upgrade your coach seat to business or even first class, but rigid rules and tighter schedules have made…

Career

The number of telecommuters is expected to nearly…

Until a few years ago, telecommuting was not considered a realistic option at most companies. But with technological advances like high-speed Internet and smartphones, more…

Wellbeing

Your new food ally to ward off type…

For people who may be headed for type 2 diabetes, regularly eating pistachios might help turn the tide, according to a small nutrition trial from…