eye-3-yellow-3d-2-new-logo philly_kyw_new philly_94wip_new 35h_cbssportsrad_philly philly_wpht_new

Tech

Facebook Announces plans For $5 Billion IPO

(Photo Illustration by Justin Sullivan/Getty Images)

(Photo Illustration by Justin Sullivan/Getty Images)

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up

By Ian Bush

PHILADELPHIA (CBS) – Facebook has announced plans to go public — and the company is hoping to raise five billion dollars in its initial offering of stock a few months from now. The company has filed papers with market regulators, and it’s giving consumers a glimpse into a previously secret world.

We knew Facebook’s reach was far and wide, but how about these numbers: every day, 483 million active users. 2.7 billion ‘likes’ and comments. 250 million photos uploaded.

Mark Zuckerberg is a long way from eating microwave noodles in his Harvard dorm room. His company earned nearly $700 million last year, and he made more than a million bucks. After the IPO, it’s thought he’ll have more than $28 billion worth of stock. So he can afford to have his salary cut to a buck next year.  And his take includes hundreds of thousands of dollars for private jets for him, his family and friends.

The IPO could mean a Double Mint for those Winklevoss twins who claimed Facebook was their idea.  They could make more than $225 million.

If you’re checking Facebook on a smartphone or tablet, you’re not alone: the company says mobile growth is outpacing computer viewing.   But in their S-1 filing with the Securities and Exchange Commission, Facebook warns of no ‘meaningful revenue’ from their mobile product, because it’s ad-free.  That’s very likely to change.

And if the social network hopes to live up to an estimated $100 billion market valuation, it’ll have to reassure investors that it’ll keep reaching well beyond display ads to bring in gobs of cash.

Top Content On CBSPhilly