February 1st, 2012
05:12 PM ET

Facebook files for $5 billion IPO

At long last, the Holy Grail of Internet IPOs is here. Facebook filed Wednesday to raise $5 billion in an initial public offering.

It's not yet known on which stock exchange Facebook will trade, or what its ticker symbol will be.

In 2011, Facebook earned $1 billion on sales of $3.7 billion. As of December 31, Facebook had 845 million daily active users.

The vast majority of Facebook's revenue comes from advertising: a combination of search and display ads.

Facebook's other revenue stream is its payment system for purchases within apps and games: Facebook Credits. Facebook keeps 30% of the revenue from those payments, and passes the remaining 70% on to the app developer.

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Filed under: Business • Facebook • Finance • Technology
soundoff (5 Responses)
  1. Jeff Frank (R-Ohio) "Right Wing Insanity"

    Can you buy food, clothing, and transportation using Facebook credits?
    Peoples greed and conceit payed off big for somebody.

    February 1, 2012 at 9:01 pm | Report abuse |
  2. just curious

    This will be way overpriced just like Google. People are looking for a ground floor opportunity in the penthouse suite.

    February 2, 2012 at 2:38 am | Report abuse |
  3. banasy ©

    I could so care less about FB.
    Farmville failed, too, btw…to hear my neighbor tell it…

    February 2, 2012 at 8:30 am | Report abuse |
  4. L.A. Law

    While American Airlines wants to avoid paying the pensions promised to its employees, who PAID into it for years.

    What's wrong with this picture? 🙁

    February 2, 2012 at 12:17 pm | Report abuse |
  5. L.A. Law

    Charge up to the HILT. Have a great time, live good, go on vacation, buy a McMansion you can't afford, live in it for 3years years without paying for it. Then declare bancrupcy, MAFIA fronts do it all the time. Ever see a bar open over and over in the same place with a new name?

    February 2, 2012 at 12:24 pm | Report abuse |