The title of this post should perhaps instead be ‘Facebook takes the plunge’. Yes, it’s what anyone interested in internet business and social technology is talking about… Facebook is poised to sell shares in itself. It’s expected to be worth between $75bn and $100bn (that’s up to £63bn, or thereabouts). Yikes.
It’s the first social media platform to sell shares, and I’m sure the owners of other big companies will be watching carefully – though with over 800m worldwide users, it’s difficult to draw comparisons between Facebook and other organisations. It’s just so massive.
The move has revealed a lot of facts about Facebook that people could previously only guess at. For example, it makes around $1bn in pure profit and 85 per cent of its revenues come from advertising, which is a lot, despite being a lower proportion than in 2010 and 2009. It doesn’t currently use advertising for its mobile apps, which is something which may change, as surely smartphone use can only increase over the next year.
One of the statistics which really struck me was that 250m photos are uploaded to Facebook every day. That’s just incredible. And, perhaps more amazingly, 12 per cent of its revenues come from Zynga, the company behind Farmville. I’ve always steered clear of that app myself… I think it’s annoying. I had to ban it from my news feed because I got sick of people inviting me to feed their imaginary cows, or whatever it is you’re supposed to do with it. But you’ve got to hand it to Zynga – they invented an extremely contagious game.
Silly distractions aside, if you’re thinking of buying some of those shares, its ticker on the stock exchange will be ‘FB’. Maybe I’ll have a dabble.
