Secrets Spilled by the Facebook IPO
Mark Zuckerberg flies private, and other revelations
By Kate Seamons, Newser Staff
Posted Feb 2, 2012 7:35 AM CST
Updated Feb 2, 2012 7:51 AM CST
This Dec. 13, 2011 file photo, shows workers inside Facebook headquarters in Menlo Park, Calif.   (AP Photo/Paul Sakuma, File)

(Newser) – Facebook has officially filed its 150-page S-1 with the SEC, which means a boatload of new details about the company are officially out in the open. Some things you didn't know before, but do now, by way of the Los Angeles Times, Huffington Post, and New York Times:

  • Mark Zuckerberg's annual salary will fall to $1 in 2013, a la Steve Jobs, but this year he'll collect a $600,000 salary, an increase of $100,000 over last year. (Of course, salary, schmalary: He could be worth as much as $28 billion after the IPO; this year's salary is .002% of that amount.)

  • But Facebook has taken care of some other things for Zuckerberg: It pays for his "security personnel," and footed the bill for a home security system.
  • Facebook also allows Zuckerberg and COO Sheryl Sandberg to use private planes for business purposes, to maximize "such executives' productive time and ensures their quick availability." Bonus for Zuck: Family members and "others" are permitted to accompany him, and personal use of the planes is considered Zuck's "other compensation"—which totaled $692,679 last year.
  • Some 85% of the company's revenue comes from advertising. More interesting: 12% comes from Zynga. Last year's revenues: $3.7 billion.
  • Of the 845 million people with a Facebook profile, 483 million log on daily. In Q4 of last year, users posted an average of 2.7 billion likes and comments every day.
  • David Choe, the graffiti artist who painted murals on Facebook's walls in 2005, was offered a few thousand dollars, or stock worth about the same, for doing the job. Those shares could be worth more than ... $200 million.
  • Another person who will make out more than OK: Daddy. Zuckerberg's dad was awarded 2 million shares "in satisfaction of funds provided for our initial working capital."

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Showing 3 of 14 comments
MrBrownstone1475
Feb 2, 2012 7:32 PM CST
Posting about the annoyance of facebook is equally as annoying as the posting on facebook you so condemn. Facebook users are just like you. They want to say something and put it out there. Simply put, if you don't like the idea of facebook, then don't use it. Stop complaining about it. It's already grown into something that is profoundly changing our society. We're seeing rallying power the likes of which have never been seen. Revolutions are starting through social media. It's only beginning. And it will continue to grow and connect people across the globe for years to come.
aspergers-guy
Feb 2, 2012 5:57 PM CST
Facebook is a bad cross between AOL, Yahoo, MySpace & Google. Their revenues mostly come from advertising & this Wired article says advertisers are saying effectiveness of ads on Facebook aren't anything like that from TV, print, or radio ads (or even from Google ads) http://bit.ly/wi6tY0 The IPO looks like they want 30 million shares for an opening share price of $29.73 Problem with that is, their current revenues (net income) are $1 billion. My math works out to a $12.49 share price based on those numbers based on a P/E of 14:1 (my math could be incorrect here, I can't get an actual number on the proposed shares to be sold in the IPO... if the shares sold in the IPO is lower, say 10 million, the $29.73 share price of the IPO makes sense based on the recent net earnings) Unless Facebook post-IPO can get their ad revenues comparable to Google's, there's nothing there to point to a sustainable ~ $30/share stock value however. In the long run, I can imagine them turning into another Yahoo or AOL, just another web portal their users use to check email or chat or play online games while getting targeted ads thrown at them the whole time they are using the portal. These stock price ranges are likely to be Facebook's future: http://finance.yahoo.com/q?s=YHOO & http://finance.yahoo.com/q?s=AOL&ql=1 my guess is, the thing will IPO for near $30 & be down in the low-20s or high-teens by the end of the first day's trading
charcinders
Feb 2, 2012 9:46 AM CST
Why would anyone be annoyed by this? It's their money, they can do what they like with it. If you don't like it, don't have a Facebook account, it's not mandatory. Yet.