Zuckerberg Mark - 32%
Microsoft - 1,7%
Packet size of Zuckerberg is 23% of economic and 32% of voting shares. But Zuckerberg has also the right to vote on 29% of voting shares. With respect thereto in total Zuckerberg can vote 60% of the total number of voting shares that allows it to be the controlling shareholder of Facebook.
By June, 2020 assets of Facebook are among:
- Facebook.com - - the world's largest social network,
- Facebook Venture Capital
As of August, 2016 Facebook has several development centers:
Facebook has ordinary and preferred shares. In addition papers of both categories are divided into classes. A difference between them, in particular, in the number of votes which the holder of paper has. The common shareholder of class A (they were also offered investors) receives one vote, a class A In – at once 10.
Main article: Financial performance of Facebook
2019: Growth of revenue by 27% to $70.7 billion, fall of profit by 16% to $18.49 billion
In 2019 Facebook gained $70.7 billion that is 27% more than an indicator of year prescription. Advertizing revenues of the company increased by the same 27% to $69.7 billion, and other sources of earnings brought social networks of a stake of $1 billion.
By the end of December, 2019 at least once in day 1.66 billion users came into social network that is 8% more, than the previous year. The monthly audience exceeded 2.5 billion people, having also increased by 8% year on year.
If to take at least one of Facebook services (the social network of the same name, Instagram, WhatsApp or Facebook Messenger), then the day audience exceeds 2.26 billion people, and monthly — 2.89 billion.
As notes Reuters agency, the growing indicators of revenue and number of users say that the audience of Facebook did not turn away from social network, despite the numerous scandals which happened recently because of personal data leakages and questions concerning use of social network for influence on political preferences of users.
As of December 31, 2019 the number of staff of Facebook was 44,942 persons that there is 26% more than the size of state the previous year.
The net profit of Facebook at the end of 2019 was equal to $18.49 billion, having decreased by 16% of rather previous year.
In day of the publication of annual accounts of a stock of Facebook fell in price for 7.2% as investors began to worry that times of rapid revenue growth and audience remained behind.
The chief financial officer of Facebook David Vener reported that growth rates of revenue of the company will decrease owing to several reasons among which — a high maturity of business of the company, concern about sale of target advertizing and introduction of legislative arrangements in the field of regulation of questions of confidentiality worldwide.
Business in Russia
Main article: Facebook in Russia
Facebook began to be Russified in 2008, and in the spring the 2010th employed the development director in Russia.
Main article: Audience of Facebook
2018: 2.32 billion people
By the end of December, 2018 1.52 billion users came into Facebook of times a day that is 9% more, than the previous year. The monthly audience of social network also increased by 9% during this time — to 2.32 billion people
Main article: False accounts in Facebook
The prohibited content
Main article: The prohibited content in Facebook
Collection of data on users
Main article: As Facebook collects and sells data of users
Advertizing in Facebook
Work in Facebook
Main article: Work in Facebook
As work how many earn and as there lives the staff of the world's largest social network.
Purchase of cartographic service Mapillary
In the middle of June, 2020 Facebook announced acquisition of Mapillary company. Read more here.
Facebook, Zuckerberg and Trump: main thing
At the beginning June, 2020 it became known that the staff of Facebook calls a virtual strike because of Zuckerberg's failure to act. They oppose "non-interference policy" and require to delete the Trump's post about readiness to use military force in response to actions of protesters. Here what is written by employees in social networks.
|"I work in Facebook and I am not proud of how we prove to be".
"I am ashamed that I work in Facebook as the company stayed idle and did not delete the Trump's publication calling for violence. I categorically do not agree with it. In my work I like technical aspects and smart/kind collective, but to do so incorrectly. Silence means partnership".
According to the shorthand report of a conversation of Mark Zuckerberg with employees which was at disposal
1. Facebook can accept temporary restrictions on posts of statesmen in the USA if civil disorders become aggravated. The company deleted misinformation about COVID-19 because it represents emergency in the field of public health care, and exceeding of powers by police can be also considered as emergency which requires review of rules of moderation;
2. Only one Afro-American decided to participate in decision making according to the Trump's publications. Mark Zuckerberg added that in many departments of the company the Afro-Americans also work. (*я so I understand that it in response to what employees pressed on him why the discussion did not include more them voices);
3. Facebook has a plan to solve problems in connection with the Trump's posts and moderations of content in general. Zuckerberg told that the company:
- will review policy for figures who threaten with use of force;
- will review policy which is able to allow people to use threat of infection of COVID-19 for suppression of a voice;
- will consider a question of adding of new labels for content which formally does not break regulation of community, but somehow causes contradictions which will be considered by employees;
- will undertake new initiatives for promotion of racial justice on Facebook.
4. Mark Zuckerberg considers that preserving of posts of Trump in Facebook, most likely, damaged to public perception of the company. He said that he was upset with posts of the American president, one of which warned protesters that "when marauding begins, firing begins". "But I knew that I need to separate the personal opinion... from what our policy and the principles of the platform which we manage, understanding that the decision made by us will lead to the fact that many people in the company will be very upset, and we will receive a lot of criticism in media";
5. Zuckerberg noted that original video of murder of George Floyd by the police officer was posted in Facebook, this story in social network was not held back. "Giving to people a voice which could not get to news earlier. And that abnormal things were visible. I think that it matters too";
6. The red line which Trump nevertheless cannot cross exists. For example, the social network deleted the Trump's advertizing which misled users: campaign poll actually was an United States Census. Trump never commented on this situation;
7. Zuckerberg is concerned by the fact that expression and presentation of the rights will only amplify, and said that we sometime will regret about it. "Every time when there is something contradictory, your instinct is as follows: well, let's limit everything. Then you finally will limit many things which, I think, finally suited all"
Purchase of Giphy service for $400 million
In May, 2020 Facebook purchased service for search and transfer of gif images of Giphy. Transaction amount is $400 million. Service will be built in Instagram, the brand is saved, and users will not notice a difference.
The social network uses several years API Giphy for search of gif images in applications of Instagram, Messenger and the main application of social network. According to The Verge, 50% of traffic of Giphy come exactly from there.
Giphy was started in 2013 as service for search GIF анимаций. According to Crunchbase, from the moment of the basis the company attracted $150.9 million. During a final round in October, 2016 the company was estimated at $600 million, Wall Street Journal claimed. Daily service processes more than 10 billion units of content for more than 700 million users, it is told on the website Giphy.
267 million accounts of Facebook sell in the Darknet for $540
On April 20, 2020 analysts of Cyble announced detection in the Darknet of these 267 million accounts of Facebook. They purchased them at hackers for $540, i.e. on 0.0002 cents for the account. Data contained the unique identification number in Facebook, the phone number, a complete name and a time mark and generally concerned users in the USA.
Cyble imported data to the AmIbreached.com platform allowing users to check whether their accounts enter the list of compromised.
For the first time the database with information on users of Facebook was indexed by search systems in December, 2019. And then it is published at a hacker forum. 2 days later after the publication data were detected by the information security expert Bob Dyachenko (Bob Diachenko). It immediately notified on it the Internet service provider servicing the server. 5 days later access to the server was closed.
In March, 2020 the similar database was indexed by the search system BinaryEdge. In addition to former 267 million to accounts it contained these 42 million new.
25 million records from these 42 million contained the same data types, as in the initial version of base. Other 17 million contained the additional information, such as personal information from a profile and the e-mail address.
Dyachenko detected this base in 2 days after indexation and also notified on it Internet service provider who limited access to a resource at the beginning of March, 2020.
According to experts, data were obtained by malefactors by cracking of third-party API. And before Facebook limited access for developers to phone numbers of the users. One more possible option of receiving records — a skraping (the automated collecting of open data from pages of users). Most likely, information now obtained by hackers are used for spam sending and a phishing, experts warned.
Facebook took 9.9% of the shares Jio Platforms for for $5.7 billion
On April 21, 2020 Facebook announced purchase of 9.9% of Jio Platforms for $5.7 billion. As a result of this transaction the American social network becomes the major minority shareholder of the operator of mobile services, largest in India, and Internet access. Read more here.
These 267,000,000 users of Facebook found in open access
On December 25, 2019 CYBERSECURITY- the expert Bob Dyachenko (Bob Diachenko) and specialists of Comparitech company announced detection of the unprotected bases Elasticsearch, containing data 267,140,436 users of Facebook (the most part of information belonged American to users). So, it was possible to find identifiers of users, phone numbers and names in base, and anyone, without password or any could get access to all these data authentications.
Experts consider that the base belonged to a certain criminal group from Vietnam. Therefore specialists asked for the help not owners of base, and directly provider who closed an information access right after the warning received from researchers.
According to specialists, the DB was in open access at least two weeks (for the first time it was indexed on December 4, 2019), and is during this time detected by malefactors as on December 12, 2019 the dump of a DB was already published for downloading at a hacker forum.
Researchers write that the data which are contained in a DB were probably collected using a skraping or were received by abuse of API Facebook. Access to API was limited in 2018, however malefactors, presumably, could detect a certain vulnerability and API continued to abuse. So, in November, 2019 Facebook already recognized that more than 100 third-party application developers had access to user data through API group, despite of the fact that access to this information was limited last year.
Representatives of social network reported that they study a fresh incident, but assume that information in a DB was collected even before changes which the company performed for the last few years.
Purchase of the developer of virtual reality Beat Games
The average price of the paid publication grows
Selection of $1 billion for construction of cheap houses in California
In October, 2019 Facebook announced that it will direct $1 billion for construction of affordable housing in California. Thanks to these investments it is going to create 20 thousand houses for teachers, the staff of medical institutions and emergency services and also for others "the vital workers".
The company will spend $1 billion for the solution of a housing problem in California and San Francisco, in particular, within 10 years. The following expenses are planned:
- $ 250 million — on construction of houses for people with different income level on the lands which are owned by the state;
- $ 150 million — on affordable housing, including for the homeless, in Bay Area;
- $ 225 million — on construction more than 1.5 dwelling units for people with different income level on the lands belonging to Facebook;
- $ 25 million — on construction of houses for teachers and other important specialists in districts Santa Clara and San Mateo;
- $ 350 million — as the additional obligations connected with implementation of housing initiatives.
According to TechCrunch, San Francisco is considered from the most expensive regions for life. Locals test hatred to the technology companies which, according to them, are provoked by increase in prices. Especially sharply the problem of shortage of affordable housing in the city concerns people with low and middle-income.
According to the chief financial officer of Facebook David Venus (David Wehner), in San Francisco even the family earning more than $100 thousand a year is considered needy. Though in the state a high salary, more and more people are not able to afford to live in certain quarters because of price explosion on the real estate, he emphasized.
The authorities of California say that it is extremely necessary that also other large companies followed the example of Facebook. The solution of a question of high real estate value is possible only with a full support of the companies.
Purchase of software developer for control of computers power of thought of CTRL-Labs
Purchase of the developer of services for creation of chat-bots of Servicefriend
In the middle of September, 2019 Facebook purchased a startup of Servicefriend which is engaged in creation of chat-bots for the company with service of a large number of clients. At the same time the transaction was not advertized. Read more here.
Nursing mothers sell milk through Facebook
By July, 2019 in Facebook there were several groups where nursing mothers can sell or non-paid give to other mothers excesses of milk. This alternative to banks of breast milk did not get approval at the American academy of pediatricians. Read more here.
The U.S. presidential candidate suggests to separate Apple, Google, Amazon and Facebook
In the middle of March, 2019 senator and the U.S. presidential candidate from Democratic party Elisabeth Warren suggested to separate such technology companies as Apple, Facebook, Amazon and Google. The campaign of senator got support in social networks. Read more here.
Growth of revenue by 37% to $55.84 billion
2018 Facebook completed with revenue in the amount of $55.84 billion that is 37% more in comparison with previous year. Almost all turnover is the share of advertizing: its volume increased by 38% and reached $55.01 billion. 93% of this business were the share of the advertizing placed in mobile versions of Facebook, and this share was measured in the 2017th by 89%.
In 2018 the net profit of the company was $22.11 billion, having exceeded an indicator of year prescription for 39%.
By the end of December, 2018 1.52 billion users came into Facebook at least once in day that is 9% more, than the previous year. The monthly audience of social network also increased by 9% during this time — to 2.32 billion people.
In the USA and Canada which remain the most profitable markets for Facebook the monthly audience grew to 242 million at the end of 2018 from 239 million the previous year. In Europe the indicator for this period raised up to 381 million from 370 million.
At the same time Facebook could increase significantly revenue from each user in the USA and Canada — up to $34.09 from $26.26 in 2017.
|Our community and business continue to grow. We changed radically how we manage our company to focus on the biggest social problems, and we increase investments into creation of new and inspiring methods of communication of people — the founder and the CEO of Facebook Mark Zuckerberg whose to words are given in the press release said.|
The stock market very positively reacted to indicators of Facebook in 2018 which was saddened for the company by scandals over personal data of users. After the publication of the reporting of a stock of the company rose in price more for 10%. In the 2018th the quotations of social network dropped almost by 20%.
Expenses on lobbyism in $12.6 million
At the end of January, 2019 the federal report of the USA on lobbying according to which in 2018 five the technology companies, largest in the country, spent $64.3 million for lobbying of government officials was issued. Expenses of Facebook on these purposes made $12.6 million Read more here.
Zuckerberg transfers top management of Facebook to Android smartphones because of the conflict with Apple
In the middle of November, 2018 it became known of the requirement Mark Zuckerberg for use occasion Android-smartphones top managers Facebook. To heads prohibit to use iPhone after the page conflict Apple.
That Zuckerberg forces directors of Facebook to pass to devices with Android in a basis, reported the The New York Times edition (NYT). According to its information, this solution followed after the interview of the CEO of Apple Tim Cook to MSNBC TV channel in March, 2018. Then he condemned Facebook for the fact that the social network collects data of users.
|Confidentiality for us is human right. It is civil liberty — Cook said, having added that Apple would never appear in such situation.|
In March, 2018 Facebook appeared in the center of scandal. It became clear that the staff of social network reported data of millions of users to the third party - Cambridge Analytica analytical company which was closely connected with the campaign headquarters of the president USA Donald Trump.
Mark Zuckerberg in reply called criticism from Cook extremely surface. He also emphasized that it is important to avoid the Stockholm syndrome and not to allow the companies which want to earn more from clients, to convince users that care for them stronger.
Facebook confirmed to NYT that employees are really called for use of smartphones on Android, however in the company explain it with popularity of the operating system.
Not all top managers Facebook follows Zuckerberg's prohibition. The The Verge edition checked Twitter accounts of the high-ranking staff of Facebook, and, judging by the last messages, some of them still use iPhone. It is possible that the head of the company not too insists on the prohibition or top managers use Android gadgets only for work.
Plans to pass completely to renewable energy sources
|We undertake the obligation to reduce emissions of greenhouse gases by 75% and to provide with absolute renewable energy our global transactions by the end of 2020, said in the statement of the company.|
In Facebook several years use energy from renewable sources. So, since 2013 when the company for the first time purchased the electric power received from wind energy, Facebook signed contracts for more than 3 gigawatts of solar and wind energy that includes more than 2500 megawatts for the last 12 months.
Besides, in the company noted that in 2015 the task to provide by 2018 with renewable energy sources 50% of the objects was set. The company managed to solve this problem earlier, having reached in 2017 an indicator in 51%.
Facebook by 10 times accelerated MRT-scanning thanks to AI
Blocking in Papua New Guinea
At the end of May, 2018 the government of Papua New Guinea announced prohibition of Facebook. In the country it is going to create own network.
According to by BBC with reference to the Minister of Communications of Papua New Guinea Sam Basil, Facebook it will be blocked for a month to look how citizens use service for distribution of false information and a pornography. Also the users creating false accounts will be identified. They are threatened by legal prosecution for violation of the law about cyber crime, entered in 2016.
Besides, the authorities intend to study how other states and also the importance of the platform for the state located in Oceania interact with Facebook. Blackout of Facebook in the country and creation of national social network in which there will be no counterfeit accounts is allowed.
|In case of need we can bring together our software developers to create the website which would be suitable Papua New Guinea for communication as within the country better, and at the foreign level — Beyzil said.|
Prohibition of Facebook in Papua New Guinea will hardly become a big problem for local population and the most social network as, according to the World Bank, in the country Internet access has no more than 10% from 8 million inhabitants. The audience of Facebook by the end of May, 2018 exceeds 2 billion users. How many among them citizens of Papua New Guinea, it is not specified.
The authorities of the different countries began to show concern about work of Facebook and initiated investigations after earlier in 2018 it became known of a personal data leakage of 87 million users of social network.
According to Sam Beyzil, it is necessary to protect personal data of users of Facebook.
|Our government which is carried away for itself IT globalization had no time to study pluses and minuses — the minister added.|
Fine of $33 million for failure to help with corruption investigation
At the beginning of April, 2018 it became known that Facebook was fined $33 million for failure to help with corruption investigation.
According to Reuters, court of Brazil made the decision that Facebook is obliged to pay 111.7 million reals (about $33.4 million p to a rate for April 4) for the fact that the company refused to cooperate in legal investigation of corruption. The representative of Facebook company answered that they "consider all options of actions within the legal framework".
According to the statement of prosecutor's office, the essence of charge consists that in 2016 Facebook did not provide access to correspondence in the WhatsApp messenger which the persons who are under examination on a charge of fraud in the field of health care in the State of Amazonas, Brazil used.
In the comment, the received Reuters by e-mail, Facebook called this penalty not having the reasons.
|Facebook renders necessary assistance to law enforcement agencies. At the request of the authorities, we provided data according to the current legislation. We understand that this penalty has no reasons, and we study everything the options of actions which are available at our disposal within the legal framework, says the Internet company.|
According to data of Federal Police, in April, 2016 the Brazilian judge published the order about that Facebook provided to authorities access to messages of WhatsApp about which there is a speech.
The penalty made 1 million reals plus percent per every day when Facebook did not execute the order, since that moment when it became effective in the middle of June, 2016, and finishing September, 2016 when it was publicly announced corruption investigation, reported in police.
As a result investigation which received the name Operacao Maus Caminhos or "The transaction "Incorrect Way" the Federal Police exposed plunder of tens of millions of reals of public funds.
Expenses on lobbying
At the end of January, 2018 it became known that the American IT giant Apple Amazon, Facebook and Google in the 2017th spent the record amount for lobbying of the interests and attempt to influence the American authorities — nearly $50 million.
Facebook in 2017 spent for lobbyism the rekrdny amount — about $11.5 million, trying to resist to toughening of the legislation regulating online content and advertizing activity. Read more here.
On January 23, 2018 Facebook announced acquisition of software developer for identification of the identity of Confirm. The cost of the transaction does not reveal, as well as plans of the buyer for use of Confirm technologies in the products. Read more here.
The error of the translator who is built in Facebook turned back charge of terrorism and arrest for the user
The Israeli police by mistake arrested Palestinian Halavim Halavi after that published in Facebook the message in Arab with a wish of kind morning, report the Fastcompany.com portal on October 23, 2017.
Halav, working as the builder, the post with the photo with a cup of coffee against the background of the bulldozer which, in addition, were used in the region for carrying out terrorist attacks accompanied.
Subsequent events of steel for the author of the message bolt from the blue: the Israeli police accused him of preparation of act of terrorism and arrested.
It turned out that the machine translator who is built in Facebook working at a basis of neural network, a tragic image incorrectly translated a harmless wish of kind morning into Hebrew as "attack them" and into English as "do much harm them". And the bulldozer on a photo only aggravated incorrect interpretation of initial sense of the message.
As it became clear, the Arab demotic expression "all kind morning" and a phrase "do much harm" differ with it with only single letter because of what the neuronet and made a fatal error. After several hours of interrogation the police nevertheless released the Palestinian. The publication which became a reason for arrest of the innocent person was deleted from Facebook. Comments on how there could be a similar error, from Facebook did not follow.
In August, 2017 Facebook announced that in social network the machine translator using technologies of neuronets who automatically translates content of the website from one language on another was implemented. Many technology companies, including Microsoft and Google, are gradually implemented by machine translators that accelerates and improves result. However the example given above shows that so far transfer using neuronets is still very far from perfect.
Employment of the former officials and intelligence agents
In October, 2017 it became known of plans of Facebook to take the people having access to the classified information to the state. Thanks to it the company intends to fight against possible attempts of the foreign states to affect public opinion and at future elections in the USA through social network.
According to Bloomberg with reference to the informed sources, Facebook is ready to employ former employees of the government and intelligence agencies. Though their access to confidential information is lost after termination of work in bodies of the authorities, it can be recovered for work on behalf of Facebook. The edition notes that hiring of people with access to the classified information is considered customary practice for private business.
It is supposed that such workers will have to obtain the classified information on the threats arriving from the outside from the state, and this information will be considered in the analysis of the advertisements ordered on the Facebook platform.
Need to check declarations in Facebook arose after the social network estimated volumes of the political advertizing ordered from false accounts. According to the management of Facebook, all of them were connected with Russia. The messages having "the separating character" were seen by not less than 10 million American users.
In September, 2017 Facebook reported that it identified about 470 false accounts which the social network connects with Russia and through which thousands of messages of political character during the period from June, 2015 to May, 2017 were distributed.
The press secretary of Facebook refused comments. At office of the director of the National intelligence of the USA and Department of internal security did not answer requests for submission of comments at the request of Bloomberg.
The European Commission fined Facebook 110 million euros for information hiding during purchase of WhatsApp
In 2014, said in the solution of the regulator, Facebook specified in documents for approval of the transaction on purchase of WhatsApp that will automatically not integrate accounts of users of social networks and the messenger. However two years later after purchase it was made.
Facebook threatened a penalty at the rate to 1 percent from an annual turnover — to 276 million dollars, proceeding from the reporting of the company for 2016. However the social network actively cooperated with the regulator, and the size of a penalty was reduced, the European Commission announced.
The European Commission called a fine of 110 million euros "proportional".
The Lithuanian stole more than $100 million from Google and Facebook
In March, 2017 to media there went information that Google and Facebook suffered from the phishing attack organized by the swindler from Lithuania. Company names did not reveal, but it was noted that the malefactor managed to jockey out more than $100 million Read more here.
2016: Opening of production laboratory for acceleration of production of new devices
At the beginning of August, 2016 Facebook announced opening of production laboratory Facebook Hardware Lab thanks to which the company is going to accelerate development and testing of new devices. Read more here.
FB celebrates decade
Facebook will start office social network
From the publication The Financial Times of November 16, 2014 it became known of what Facebook develops business social network. New service under the name Facebook at Work, as expected, will compete with Google Drive, Microsoft Outlook and LinkedIn.
According to edition sources, the project which is since 2013 in development is intended for the staff of the companies: they will be able to conduct business correspondence in a chat, to come into new professional contacts and to exchange documents.
Data from personal pages on Facebook will not be displayed in new service that will allow employees of the organizations to separate personal data from corporate. At the same time Facebook at Work will receive a number of similarities to the world's largest social network. In particular, the newspaper writes about presence of a news feed and the section with contacts of users.
Facebook tests social network for business communication
The Facebook at Work service will be free, but there will be an advertizing from which Mark Zuckerberg company will be able to earn. The project of uniform corporate social network seems very perspective as many companies block social services in internal network that workers did not distract from office tasks. The active audience of Facebook totals more than 1.3 billion people. For comparison, at the largest professional social network LinkedIn this indicator is only 90 million at the general user base in 300 million subscribers.
It is noted that the staff of Facebook already long time uses Facebook at Work in daily work. Besides, some other companies began to test new Internet service. At the time of writing of a note of Facebook did not provide comments about new social network which announced in media.
Earlier tekhnoportat TechCrunch with reference to the ex-employee of Facebook wrote that the company uses for communication between colleagues the FB@Work project which in the future should replace to corporate users e-mail and services of fast message exchange.
2013: Mail.ru sold stocks of Facebook for $525 million
Mail.ru Group announced sale of 14 million stocks (0.5% of total number) of social network Facebook. These are the last actions of Facebook belonging to the Russian company; they were sold for $525 million. Mail.ru Group became the shareholder of Facebook in 2009, at that time the company was called DST and actively bought up shares in different Russian and foreign online projects. Before an exit to the IPO in 2010 Mail.ru Group separated minority shares in foreign assets among themselves and the shareholders from group of DST Global funds (her main investor is the controlling shareholder of Mail.ru Group Alisher Usmanov, and the managing director — Yury Milner).
2012: Successful IPO and crash of actions
At the beginning of February, 2012 it became known that Facebook submitted to SEC (SEC) the request for primary placement of the stocks at the exchange. Waited for this event long. It was expected that the IPO of Facebook can break all previous records on the volume of borrowed funds.
In the request the desired amount of placement of $5 billion is specified, but the actual amount, most likely, will be higher, most of experts believes. According to WSJ, during primary placement Facebook can attract up to $10 billion that will allow to estimate all company at $75-100 billion.
Facebook has two types of actions — class "A" (with one voice on an action) and the class "B" (with 10 voices). The most 27-year-old Zuckerberg possesses 28.2% of stocks of the class "B". The IPO can make him the fourth richest person in the USA with the capital in $28 billion.
The request for the IPO for the first time opened financial performance of Facebook (see the section activity Indicators, above).
- The share value of Facebook which the famous musician, the leader of U2 group Bono, purchased through private investment fund for February, 2012 was 1.1 billion dollars.
If the IPO takes place the leader of U2 will become the richest rock star in the world, eclipsing even Paul McCartney. A part of income of Bono is intended to be directed to financing of the charitable projects, in particular, to provide humanitarian aid to Africa.
Meanwhile many were skeptic when in 2009 Bono spent over 90 million dollars for purchase of shares of the company. The matter is that then the rock star had a reputation of the loser investor: several projects in which he made the investments came to the end with crash. However now Bono will be with interest rewarded for last failures.
- According to unofficial data it became known that the company is going to begin on May 7 a road show (road-show) - a series of the presentations for investors in whom top management of social network will tell about plans of further development of the company. This stage lasts, as a rule, one-two weeks then biddings begin.
According to unofficial information, since the beginning of April of Facebook prohibited the alternative exchanges organizing a trading in shares of private companies to carry out transactions with its securities. Clearer understanding of actual share value of social network was supposed that this solution will allow Facebook to estimate more precisely a circle of the shareholders in anticipation of the IPO and also to give to investors.
The Morgan Stanley investment bank will act as the main organizer of the IPO of Facebook. Besides, the social network attracted to the organization of share placing of 30 more banks, including Goldman Sachs, Bank of America of Merrill Lynch, Barclays Capital, JP Morgan and others.
- On May 17, 2012 Facebook placed the shares within the IPO for $38 for paper, the upper bound of the price range sounded by the company a few days ago (the lower bound — $34). It turns out that all social network is estimated at $104 billion (taking into account the actions which are subject to release in the future), and the attracted amount — $18.4 billion (taking into account the option for banks underwriters — if it is implemented). The company and its shareholders attracted $16 billion. In total within the IPO 421.2 million shares of Facebook from which 180 million papers were implemented by the company, and 241.23 million were sold — its shareholders.
The IPO of Facebook — the largest among placements of the technology companies and the largest in the USA from the moment of placement of Visa which attracted $19.7 billion the IPO of the world's largest social network in 2008 caused a big agiotage both among professional investors, and among the ordinary people who decided to take by all means shares of Facebook. As the person, close to participants of placement, told Vedomosti, the bid book was re-signed more than by 5 times — is closer to 10. Initially Facebook set price range for the actions in the amount of $28-35 for paper, but on a wave of excessive demand at first increased the price to $34-38 for an action, and then and placement volume — by 25%.
The decision on increase in the offer was made by most of shareholders of Facebook. Management of the company agreed to sell 62% more shares, than planned, Accel Partners investment fund — for 28%, one of the first investors of Facebook — Peter Til and Goldman Sachs — is 2.2 times more. The founder and the CEO of Facebook Mark Zuckerberg did not begin to expose additional papers — he sold 30.2 million shares which will bring it $1.03-1.15 billion.
Not bad the Russian shareholders of social network — DST Global and Mail.ru Group earned from the IPO of Facebook. DST Global sold 45.7 million shares (19.4 million more, than gathered) and will earn $1.55-1.74 billion — from $660-737 million more, than planned. All this money, according to the charter of funds, will be distributed between their investors among whom Alisher Usmanov, Yury Milner, Goldman Sachs investment bank and many others. Mail.ru Group increased placement volume by 8.33 million actions up to 19.6 million and will earn from $283-317 million more, than calculated — $666.4-744.8 million.
10 most famous shareholders of Facebook
|№||Shareholder||The cost of the sold share block during the IPO, $ one billion||The cost of the remained share block (proceeding from the placement price), млрд$|
|3||DST group (all funds)||1,73||3,23|
|8||DST USA (Yury Milner's fund)||0,34||0,68|
|9||DST Global (Alisher Usmanov's fund)||0,23||0,42|
Source: American Securities Commission
Buying up of patents
At the beginning of 2012 Facebook redeemed more than 750 patents of IBM corporation which cover different technologies in the field of networks and the software. With reference to "informed sources" the Bloomberg agency reported about it. According to the agency, it can demonstrate attempts of Facebook to be protected in the future from presentation of "patent actions", similar by what was given recently against social network by Yahoo! company. This acquisition will allow to increase considerably a patent portfolio of Facebook which consists of 56 granted patents and 503 submitted patent applications now.
At the beginning of March, 2012 the Yahoo search engine accused Facebook of violation of ten patents. In particular, it is said in the statement of claim that all model of social network allowing users to create the profiles and to come into contact with other persons and the companies is based on the network social technologies patented by Yahoo.
Transfer of the headquarters in Menlo Park
Till 2022 Facebook Menlo Park will pay in the budget $8.5 million – $800 thousand a year in the first five years and further $900 thousand a year. According to Mercury News, is some kind of compensation for the half-received profit in a type of tax on sales to which the companies located in the territory of a campus of Facebook could be assessed.
Business of Facebook founded by Mark Tsukenberg in 2004 in the room of the hostel of Harvard University grows very in high gear, and for quite some time now the place in office center in the Californian Palo Alto to it appeared insufficiently. As of December 31, 2011 the staff of the company totaled 3200 employees worldwide. In the second half of April, 2012 it became known of intention of Facebook to change the place of dislocation and to move to located nearby the town of Menlo Park. As the largest social network agreed with municipal authorities, an example – worthy imitations for many large domestic holdings. Equally however, and for government officials.
The city council already approved the document in which it is in details painted what actions for development of the municipal district should take Facebook. In particular, in the nearest five company in addition to the financial liabilities stated above on an annual basis will pay $1 million with a possibility of correction of this amount towards increase, depending on a change in value of a consumer basket (CPI – Consumer Price Index). Once Facebook invests $1.1 million in city objects of capital construction. At last, the social network will spend $500 thousand more for professional development course of local staff, the program of training and the initiatives aimed at business development in the region. A part of means will go for development of a system of public transport and construction of affordable housing.
In exchange the company obtains guarantees of the authorities as much as possible to accelerate process of all necessary approvals for expansion of business and not to impose any additional payments in addition to designated in the signed agreement.
Crash of the share price
On July 29, 2012 stocks of Facebook failed for 12%, having shown the most considerable falling in the short exchange history. From the moment of the May IPO market capitalization of social network was reduced by 38% — to 56.3 bln. dollars, data of Bloomberg demonstrate. Still any large company which underwent the IPO procedure did not lose the cost so quickly.
Removal of prohibition on sale of shares and mood of investors
Investors were disappointed by the report for the second quarter in which Facebook showed deceleration of growth rates up to 32% from 45% the previous year. According to Bloomberg with reference to unnamed sources, investors intend to leave gradually the company, having sold the packets.
One of shareholders of Facebook is Microsoft which declared the desire to save the packet in 1.7% of the Internet company which considers the strategic asset and the exclusive partner.
Hiring of the PR-agency for denigration of Google
May, 2011. Facebook was convicted of black PR against Google. The world's largest social network Facebook used services of the agency for Burson-Marsteller public relations to soil reputation of Google, The Daily Beast reports.
|"In the last several days in Silicon Valley something strange is created, - the author of article writes to The Daily Beast Dan Lyons. - Feeling that someone employed Burson-Marsteller, large public relations agency that it sent different stories to information publications, pushing them to detailed studying of how Google interferes in private life. Moreover, Burson suggested one of authoritative bloggers to write caustic articles about Google which were going to be placed in The Washington Post, Politico and The Huffington Post".|
This blogger also revealed the agency. Instead of taking advantage of the offer, he published electronic correspondence with PR managers on the Internet. After that history gained fame thanks to the USA Today resource which wrote that Burson intentionally undertook "distribution of false rumors, acting for the benefit of the unknown client".***
The first suspicions fell on Microsoft and Apple, however, as it was succeeded to find out The Daily Beast, the customer - what nobody expected - there was a Facebook company. The edition refers to the official representative of social network. He explained that Facebook decided to use services of Burson in two reasons. First, because Google carelessly treats user data and, secondly, because it tries to use data of Facebook in the social services.
Use of Facebook can cause mental disorders in teenagers
During the presentation at the conference of the American psychological association in August, 2011 professor of psychology of the University of California Larry Rosen said that use of Facebook and other social networks can lead to emergence at teenagers and youth of the serious mental disorders leading to narcissism, aggression and antisocial behavior. Instead of communicating with friends and relatives personally or by phone, young people prefer text messaging on the websites of social networks. Today 42% of teenagers type the text by a blind method, and many regularly check updates on the websites at night or right after awakening. According to Rosen, excessive hobby for social networks promotes accumulation of negative emotions. However, today at users of Facebook nothing is heard about the registered cases of mental disorders.
Attraction of $1.5 billion from investors. Assessment of the company - $50 billion
On January 21, 2011 Facebook reported that it attracted $1.5 billion from the investors who estimated 100% of its stocks approximately at $50 billion. It is more than the estimated value of such companies as Yahoo, eBay and Time Warner. The first stage of the transaction took place in December, 2010 when DST Global, Goldman Sachs and funds managed by this investment bank acquired ordinary shares of class A of Facebook for $500 million. The deposit DST Global at that stage was $50 million that is equivalent to 0.1% of stocks of social network, told Vedomosti the source close to the transaction, and the manager of large investment bank.
At the second stage of Goldman Sachs sold to investors of a share in the fund investing $1 billion in stocks of Facebook of the same category, says social network. Earlier sources of The Wall Street Journal and Vedomosti announced plans of Goldman Sachs and DST Global (organizers of the second stage of the transaction) to attract thus in Facebook of $1.5 billion. Conditions of transaction assumed that Facebook can select any amount of financing between $375 million and $1.5 billion, as a result the company limited it to the amount of $1 billion — in spite of the fact that the volume of a subscription for papers of fund was exceeded (and only investors out of the USA were allowed to the transaction). Now the number of shareholders of Facebook approached 500, and under the law it will be obliged to publish open financial statements. The first such report will appear no later than April 30, 2012, the company promised. Just by this time its IPO can take place, assume sources of Reuters agency.
However, yet Facebook has no urgent need in money. The company has even no immediate plans of use of the attracted $1.5 billion: these means only improve a situation with cash and increase financial flexibility of Facebook, the chief financial officer David Ebersman says it.
Till December, 2010 and related with it Mail.ru Group (the largest co-owner both is Alisher Usmanov) owned DST Global in total slightly less than 10% of Facebook (including Mail.ru Group possessed 2.38%). Under the terms of the second stage of the transaction DST Global had the right to redeem an additional share block of Facebook for $75 million. Thus, in general according to the results of the transaction DST Global could increase a share in social network approximately by 0.25%. Whether it used this right, the representative of DST Global does not speak.
DST Global and Mail.ru Group already earned from investments into Facebook. They took the first 1.96% of preferred shares of the company in the spring of 2009, proceeding from assessment of 100% of all in $10 billion. In February, 2010, buying in addition 0.8%, DST (the predecessor of Mail.ru Group) estimated 100% of Facebook already at $12.5 billion. And at the end of the last week the system of biddings by papers in secondary market of SharePost estimated the cost of Facebook (proceeding from the transactions made with its actions) already at $76 billion (on January 19 transactions were made proceeding from assessment of all company in $62-136 billion).
From the point of view of the financial investor of Facebook — very expensive company, notices the chief of the department of corporate finances of Finam Alexey Kurasov. But while there are no public biddings by its actions, small packets so even the small transaction influences assessment are offered for sale, he explains. Perhaps, shares are redeemed even by Facebook to reduce the number of shareholders and to delay an exit in public field, he allows.
Greenpeace demanded to transfer data center of Facebook to ecological power sources
The official petition sent to Facebook by the chief executive Kumi Naidoo's Greenpeace contains the requirement to refuse use of the electric power received as a result of work of coal power station. The electric power developed by this station is used for work of the new center of data processing of Facebook located in the State of Oregon (Prineville).
Employees Greenpeace suggest to use energy of the sun and wind instead of coal to reduce the number of emissions of a carbon dioxide gas in the atmosphere. As an example in the petition the Google corporation which transferred the data the center in the State of Iowa to a power supply from wind power plant is used. The Hewlett-Packard company which developed the project of a job of servers at the expense of the electric power got in the course of processing of cow manure became one more example.
The web designer demands 84% of stocks of the company
The court of New York issued the temporary restraining order on any transfer of assets of Facebook company because of the claim from the person who claims what should belong to it 84% of this social network.
A claim to the Supreme Court of the District of Allegeyni in New York was submitted on June 30 by Paul Ceglia. According to him, Ceglia signed the contract with the founder and the chief executive of Facebook Mark Zuckerberg in 2003. According to terms of this agreement, it possesses the most part of the company and also monetary compensation is necessary. Representatives of Facebook said that they consider this claim unreasonable and demanded to give him to federal court, Wall Street Journal reports.
As stated in Cheliya's statement, he signed the contract with Zuckerberg on April 28, 2003 on development and creation of design of the website, having paid $1 thousand, but having acquired the rights to 50% of a final product.
Also this contract allegedly provides that Paul Cheliya will receive additional 1% of the company every day after January 1, 2004 to a contract completion. "We consider that this claim is absolutely unreasonable and we will resolutely fight against it", - the representative of Facebook told. The claimant and his lawyer refused to give the comments to the press.
Today, still not clearly, what image Cheliya was connected with Zuckerberg, Wall Street Journal notes. According to the copy of the contract provided in court it is made for "acquisition and development of the suitable website for the project which is already begun by the Seller (Zuckerberg), created to offer students of Harvard University access to the website under the working name The Face Book".
As analysts note, the date specified in the contract obviously contradicts earlier known data on creation of social network. So, Zuckerberg created the predecessor of Facebook under the name Facemash in October and November, 2003, however registered domain name of thefacebook.com only in January, 2004.
It is also known that in 2009 Paul Cheliya passed the defendant on the case of deception of clients of his company delivering wood fuel granules. According to case papers, the company of the newly appeared owner of the largest social network of the world collected more than $200 thousand from the clients, but did not deliver them the ordered wood granules, and did not return means. Now this legal procedure still continues.
The Russian DST buys 5% of Facebook, increasing the share to 10%
In May, 2010 the Russian DST took 5% of shares of Facebook, having brought a share in social network to 10%. Announced the Businessweek magazine with reference to two sources close to owners of network increase in a share of DST in Facebook. Information was confirmed by the source close to one of negotiators; heard the source familiar with shareholders of DST about it. Interlocutors of Vedomosti do not disclose the transaction amount and when shares were taken.
DST was included into the capital of Facebook in May, 2009, having taken 2% of preferred shares of network during an additional issue for $200 million. Soon the fund announced purchase of 1.5% of ordinary shares from employees for $97.5 million. Then DST purchased as much again, by the fall having brought an equity interest of Facebook to 5%, the shareholder of investment company told.
Also redeemed the following 5% of the shares DST from the staff of network, tells the source close to one of participants of buying up (writes Businessweek about the same). The representative of DST refused comments. Facebook does not comment on the transaction between shareholders, the representative reported it. However in April the social network prohibited the employees to sell shares in secondary market.
2004 - 2007: Early stage of financing
Facebook was created on February 4, 2004 and almost at once attracted $0.5 million at one of founders of PayPal payment system — Peter Tiel. In the middle of the same year of Facebook received $12.7 million from the Accel Partners company which estimated all social network at $100 million.
In 2006 the same Accel Partners with partners among whom there were funds Greylock Partners and Meritech Capital and also Tiel, issued Facebook of $25 million more proceeding from assessment of 100% already in $525 million.
And in 2007 1.6% of preferred shares of Facebook were taken by Microsoft, having estimated 100% of these actions at $15 billion Microsoft expected partnership with Facebook in the field of Internet advertizing sale, the CEO Steve Ballmer explained to Vedomosti it earlier, and it is happy with purchase.
- ↑ Facebook Reports Fourth Quarter and Full Year 2019 Results
- ↑ of The Verge BAN THEM ALL President Trump and his allies are now openly threatening violence against Americans — it's time to remove them from the internet
- ↑ 309 million Facebook users’ phone numbers found online
- ↑ Facebook Commits of $1 Billion and Partners with the State of California to Address Housing Affordability
- ↑ Facebook Reports Fourth Quarter and Full Year 2018 Results
- ↑ Delay, Deny and Deflect: How Facebook’s Leaders Fought Through Crisis
- ↑ Facebook declared plans of complete transition to renewable energy sources in 2020
- ↑ Facebook to be banned in Papua New Guinea
- ↑ fined of $33 million for failing to aid Brazil graft probe
- ↑ Facebook’s translation software got a man wrongly arrested
- ↑ Facebook Is Looking for Employees With National Security Clearances
- ↑ [https://meduza.io/news/2017/05/18/evrokomissiya-oshtrafovala-facebook-na-110-millionov-evro the European Commission
- ↑ fined Facebook 110 million euros]
- ↑ Facebook seeks foothold in your office
- ↑ Mail.ru sold stocks of Facebook for $525 million
- ↑ of Facebook announced the IPO and opened financial results
- ↑ of Facebook made Bono the richest rock star in the world
- ↑ Facebook attracted $16 billion
Stock price dynamics
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