A Quick Run-Down of Facebook’s IPO [UPDATE]
- Molly Troha
- On May 16, 2012
As the Facebook IPO approaches, we want to provide a quick summary of events. Slated to be one of the largest IPO’s in U.S history, the world’s largest social network has already begun to change as it moves from the private to public sector. Follow our timeline below for the Facebook IPO basics.
- After months of speculation, Facebook files for its IPO on February 1, 2012.
- Facebook buys photo-sharing social app, Instagram, on April 9, 2012. Facebook buys Instagram for $1 billion in cash and stock — a strategic move that analysts think was done in an effort to increase the Facebook IPO value.
- On April 23, 2012, Facebook buys about 650 patents from Microsoft for $550 million. Ted Ullyot, general counsel for Facebook, says of the purchase, “This is another significant step in our ongoing process of building an intellectual property portfolio to protect Facebook’s interests over the long term.” Meaning, this was another decision made with the IPO in mind.
- From May 7 – 11, 2012, Facebook’s roadshow travels across the country to appeal to potential investors. Though receiving mixed reviews, analysts project Facebook will be able to raise as much as $16 billion from the IPO.
- Facebook is criticized for lack of a mobile strategy. Though it has a strong mobile presence, the advertising is lacking. In regulatory documents filed on May 10, 2012, Facebook states “We do not currently directly generate any meaningful revenue from the use of Facebook mobile products.” This has become a major concern for potential investors and during the last presentation of the Facebook IPO Roadshow, Mark Zuckerberg addresses this concern by saying that mobile is Facebook’s first priority.
- On May 15, 2012, Facebook raises individual share prices. Original share prices were set between $28 and $35, but after being criticized, Facebook raised the amount to between $34 and $38. Facebook states that they raised its share price due to heavy demand.
- Also on May 15, 2012, Zuckerberg announces that Facebook is offering an additional 50 million shares in the company. This brings the total to about 337 million shares.
- Facebook continues to develop their mobile strategy on May 15, 2012 by joining forces with Lightbox, developer of a mobile photo sharing Android app. Though both companies make it clear that Facebook did not acquire Lightbox, Lightbox announces their current services will end on June 15, 2012.
- On May 16, 2012, Facebook announces that they will sell 25% more shares, putting the total at 421.2 million shares.
- On May 17, 2012, Facebook prices its final IPO price at $38/share.
- Friday morning, May 18, 2012, Nasdaq welcomes Facebook with the ticker symbol, “FB.” Mark Zuckerberg rings the bell from Facebook’s headquarters in Menlo Park, CA.
- Facebook’s first trade came in at $42.05 per share and peaked at $45, but ended the session at $38.23.
- With about 567 million shares traded by the end of the first session, Facebook set a new volume record for IPO’s.
- Facebook raises $16 billion with the final price of $38.23/share. This makes it the largest tech IPO in and the third largest IPO in history.
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