Facebook: Use it. 'Like' it. But, buy it?
May 17th, 2012
03:15 PM ET

Facebook: Use it. 'Like' it. But, buy it?

It started as the little engine that maybe, possibly could. Facebook swirled around college campuses and became a way to find out a little bit more about your classmates. But when the site went mainstream, it spread like a digital wildfire and in eight years it has gone from the little engine that could into the juggernaut tank in the social media world.

Now, the company's long road to an initial public offering is officially coming to an end. And today it will fill in one last piece of the puzzle: It's final IPO price.

Timeline: Mark Zuckerberg's rise from child prodigy to Facebook billionaire

It's not just the talk of the town or Silicon Valley, but about to be the talk of .... well, everyone. Want perspective? Facebook could raise as much as $16 billion in its IPO. That would make it the largest tech IPO in history - and the third largest U.S. IPO ever, trailing only the $19.7 billion raised by Visa  in March 2008 and the $18.1 billion raised by automaker General Motors in November 2010, according to rankings by Thomson Reuters.

Why Facebook won't start trading at the opening bell 

So as the big day approaches we wanted to give you a little insight into the company and the ins and outs of going public.

A look at the hottest ticket in town

Some days you love Facebook. Some days you want to delete your profile, run away and never, ever return. Since Facebook's big foray into mass-market appeal, you'll always hear arguments for both.

It's been lauded for helping connect generations. It's also been called things that make you think it's the devils spawn.

Many of our readers have been weighing in on why they shun the site and how they have or are preparing to deactivate their account.  In fact, you could argue, Facebook bashing is often a topic of posts on the site. "Why isn't there a dislike button?" "I hate the new timeline." If you search any tech blog, on any given week, you can probably find two or three anti-Facebook stories. It's the cool thing to do. There's always a gripe that users have with Facebook, many that are valid, and some that are just ridiculous. But it shows the deep divide over whether Facebook has been a great advancement for us as a culture.

Infographic: Life on Planet Facebook

But there's also a lot of people who will tell you they don't understand all the hatred. Omar Gallaga is one of them. Gallaga is a tech-culture reporter for the Austin American-Statesman and a technology contributor to CNN.com, NPR and Kirkus Reviews. He's got more than 1,000 friends on Facebook. For him, like many others, the site gives him the chance to occasionally catch up with friends he can't connect with otherwise. And he argues that while many will continue to gripe, eventually they find their way back to the site. That's why he says he'll probably never leave Facebook.

"In large part, the people who say they're leaving Facebook don't. Or they quit and come back," he wrote in a column for CNN.com. "Me, I'm staying put. At this point, complaining about Facebook is like grousing about the electric company while watching TV, or saying how lousy politicians are but forgetting to vote. Facebook just is. It's become an institution - one that's going to be around for a long while - and all the missteps it's made in its young, eight-year life have never prompted significant user defection."

So you wanna buy Facebook?

Some of you may share this post on Facebook after you're done reading it, and if you do you contribute in large part to the success that Facebook has and that's led it to this point. So, maybe you're thinking of trying to make some money off of it.

Where do you start? CNNMoney.com has you covered.

Wondering if it's going to hurt your wallet to get in on the hottest sale of the year? You'll want to know this:

A look at the IPO price range: Everything you need to know about Facebook's valuation and financials

But maybe you're not a Wall Street or investment maven, but you're wondering if you can still buy a piece of the pie. If that's the case, you're going to want to take a read of this story:

How small investors can get in on Facebook IPO: A guide to how to buy 

And you can always follow along with as CNNMoney.com staffers write about their attempts to buy the IPO.

So, just how rich will Mark Zuckerberg get and what does it mean for Facebook's future?

Facebook's new billionaires

If you're thinking, sure I'd like to get in on the Facebook game, but will I really benefit or am I just making the Facebook founder's pockets a little deeper?

There's a bit of both.

Zuckerberg is expected to raise $1 billion cash from Facebook IPO. And employees that will be selling their shares stand to make a decent bit of cash too - but being a paper millionaire means they'll also be giving Uncle Sam – and California - a big cut. 

Okay, you don't care about the folks who are already rich. You want to make some dough here yourself. After all, you've liked every musician and TV show you listen to and watch and you update your Facebook status from your computer when you leave work and your phone when you get home.

If you want to know if the Facebook IPO will actually give you the bang for the buck, you've got to read this piece from Fortune that takes a look at whether Facebook's IPO will pay off for investors?

Still, there's the question of whether it's a good idea to buy Facebook right now. Some investment pros say the company's valuation is bonkers. And there's been some unfortunate statistics and timing for Facebook lately. Their metrics show slowing engagement, and IPO paperwork raises some red flags about its mobile user growth.

So, before you go ahead and look up E*TRADE and put your money where your fast-typing fingers are, you'll want to see this Fortune piece on five reasons not to "like" the Facebook IPO. 

Facebook by the numbers

Sometimes, the numbers really do tell the story. How far is Facebook's reach? What impact does it have in the social media world? We're taking a closer look at the numbers, and how it compares to other companies out there, to shine a brighter light on Facebook's value.

900 million – Number of Facebook’s average monthly users in 2012.

188 million – Number of people in theU.S.andCanadathat log onto Facebook daily.

$4.84 – Approximate amount of annual revenue that Facebook earns off of each user.

85% – Percentage of Facebook’s revenue that comes from advertising.

$10 million – Amount that GM spent on advertising on Facebook in 2011.

$0 – Amount that GM plans to spend on Facebook advertising in the future.

421 million – Number of shares that Facebook will offer for sale to investors on May 18th.

$34-$38 – The expected selling prices of shares in Facebook .

$16 billion – The amount that Facebook will raise if all 421 million shares sell for $38 each.

$17.5 billion – Mark Zuckerberg’s net worth in March 2012, according to Forbes.

$17.5 billion – Amount of money lost by JPMorgan Chase & Co in the last week.

388 million – Number of black hoodies that you can buy at Gap.com with $17.5 billion.

1.4 billion – Numbers of copies of The Social Network that you could buy on Amazon.com with $17.5 billion.

1.3 billion – Population of China, as of 2011.

485 million – Number of internet users in China.

3 – Number of years that Facebook has been blocked in China by censors.

1,781 – Number of Americans who gave theirU.S.citizenship in 2011, including Eduardo Saverin, co-founder of Facebook.

$100 million – Estimated amount of money in taxes that Saverin will save by renouncing his citizenship.

What do you think about Facebook going public? Will the company last, or is it merely a passing fad? Do you know of a start-up company that you think may be the next big thing or an entrepreneur who may be the next Mark Zuckerberg? Let us know what you think in the comments below.

soundoff (64 Responses)
  1. Jeff Frank (R-Ohio) "Right Wing Insanity"

    I deleted my account, if you want to call it that, from Facebook several months ago. I had it for a couple years.
    I admit, people are pretty cool about that. No phone calls, emails, or text messages, asking about where I am or what I'm doing. They are so wrapped up in thier own lives and their little friends, they don't even know I'm gone. How cool is that?

    May 17, 2012 at 4:47 pm | Report abuse |
  2. Alex

    I know of a starup company with a cool way to surf the web, the Co-Founder is brilliant for developing this idea.

    May 17, 2012 at 4:49 pm | Report abuse |
  3. Patrick E

    What I like is for every article about Facebook, the haters have to post how much they despise it. I mean I really don't like reality TV but I don't search out articles to post to just to let people know.

    May 17, 2012 at 5:12 pm | Report abuse |
    • Now Now

      Teh article asked dude, can't complain haterz responds

      May 17, 2012 at 6:05 pm | Report abuse |
  4. Now Now

    No use, no likey, no buy.

    May 17, 2012 at 6:04 pm | Report abuse |
  5. jdoe

    I don't use Facebook, but will get a few shares and put them away. Investing is not necessarily about liking a company. It's simply thinking about where the stock price might be when you want to sell it.

    Many people didn't think Amazon or even Google would go anywhere, but look at their stock price now compared to IPO day. Internet companies like Facebook are not fixed to a business model. They can use their new capital to branch out and/or buy other companies and have multiple business lines.

    May 17, 2012 at 6:10 pm | Report abuse |
  6. Funny

    Isn't it funny how Congress is drafting legislation that would force Facebook's co-founder (who moved to Singapore) to pay taxes as if he still lived here, when virtually every US Pharmaceutical Giant moved their headquarters to Ireland years ago for the tax breaks.

    May 17, 2012 at 6:45 pm | Report abuse |
    • mickey1313

      Agree. The law should include all companies doing business in America should have to pay taxes as Americans, or take there business or of America.

      May 17, 2012 at 8:34 pm | Report abuse |
  7. Funny

    ...not to mention the hundreds of former US corporations now headquartered offshore in the Caymen Islands.

    May 17, 2012 at 6:46 pm | Report abuse |
  8. Jeff Frank (R-Ohio) "Right Wing Insanity"

    @45. Funny
    This is the exact reason the ruling class fumbles thier fingers, and just don't get it. They have driven big business to places Uncle Sam cannot manipulate them. Nor do they try to create authentic incentives to rebuild the industrial base, in a now bankrupt economy.

    May 17, 2012 at 7:09 pm | Report abuse |
  9. Greek American

    Never used it. Do not like it. Maybe buy it....

    May 17, 2012 at 8:43 pm | Report abuse |
  10. ETM

    I love facebook because I can search for my college friends from the 60's.
    Facebook income comes from advertisement but I do not read the ads in facebook because those are not what interest me.
    Will I buy it, very unlikely, If I will invest my money I would buy stocks on companies that have tangible products like General Electric. I learned my lesson when I bought SAIC, a company whose business is to provide brain power to customers. SAIC sells services of scientist, engineers and programmers who can quit the company at will, in short they have no product.

    May 17, 2012 at 9:20 pm | Report abuse |
  11. Funny Philip

    @Jeff Frank 7:02.
    You do make a valid pont when it comes to ruling class families, assuming you are refering to The Bush Dynasty being blood relatives with the Queen of England. However, that would make colin Powell a member of the ruling class family.(Bush and Powell are both blood relatives of the Queen, ~Royal Family all. sorce: Ancestry.com
    But ya kind of missed my point. ENRON scammed US for over a hundred billion and then left the country. They weren't "forced out" for crying out loud. Though I do realize as most do companies that move overseas because it just makes good business sense for those particular companies. They ain't all just tax dodgers like me. (takes one to know one)
    ENRONS accountant, also found guily in court, he wasn't "lured away", he was freaking closed down. So he changed his name and moved to The Caymen Islands next door to the dudes that made Florida's 'hanging chard' voting machines circa Bush v Kerry. Not Arthur Andersens personal name. Andersen Consulting.

    May 17, 2012 at 10:15 pm | Report abuse |
  12. Funny Philip

    Hay Jeff Frank (ROhio) I've been waiting in CNNs customer lounge for my reply to pass moderation...for about a half hr. Soooo, how's the weather in ROhio? 🙂

    May 17, 2012 at 10:39 pm | Report abuse |
  13. Lightbulb!

    Hay CNN. i just had a great idea. Make available every sing post you ever moderated and chose not to post. Maybe highlight comments that posted, and were deleted later. I'd pay 99.95. And thnk of it...Huffington ain't even got that when it comes to kicking your a'a'...hiney.

    May 17, 2012 at 10:46 pm | Report abuse |
  14. Plain old Philip

    I friended FB to build an "all about daddy" site for my daughter Leah. But it just made it easier for my old HS g/fs to find me. Right now I'm scared to go to my 40th HS reunion, and it's still a couple years away. One of the ones that found me on FB goes to every reuinion. (ahem. head cheerleader) Anyway, I dodged her at the 35th and unfriended FB. 'Unsubscribed' for those who already forgot I said "friended FB" already. 🙂

    May 17, 2012 at 10:57 pm | Report abuse |
  15. Plain old Philip

    But yeah. If I were playing the shell game, I'd pay 30 or 40 bucks per share to see if the marble is under the shell on the left. Not your left, sir. My left.

    May 17, 2012 at 11:03 pm | Report abuse |
1 2 3 4