A the time of Facebook's IPO in May 2012, Facebook was the most widely used social networking platform on planet. People from around the world including South America, Indonesia, Europe, and Australia - all use Facebook on a regular basis to post photos and share status updates.
Perhaps one of the few places Facebook has had trouble gainng adoption is in the People's Republic of China - where the government prevents outside companies like Facebook from gaining traction so that their own country-created companies can have the opportunity to succeed.
But besides the China obstacle, Facebook is considered one of the most successful companies in the modern internet age. Is Facebook taking over the world?
Does it make sense for Facebook to become a public company?
Using Facebook is certainly different from investing in Facebook shares. Looking back, we now know Facebook's intial IPO was a disaster. But even before, many analysts and industry leaders predicted an over valuation for Facebook's company - some valued the company at over $100B - a number that many argue was way too high given Facebook's user adoption rate slowed dramatically leading up to the IPO. Additionally, Facebook did not have a solid way to monetize the increasing user trend to use mobile devices - an area where Facebook actually does not make much money.
GMAT Graphics Interpretation of Facebook Chart
Presented in the chart above are the largest shareholders of Facebook going into the IPO. Mark Zuckerberg stands as the largest single shareholder of the company - selling close to $1B worth of stock. Accel Partners holds largest number of shares, but Accel Partners consists of multiple individuals.
Also shown in the list are notable companies like Microsoft, Goldman Sachs, and individuals like Mark Pincus (founder of gaming company Zynga) and Peter Theil (founder of Paypal).
Note the chart shows two different shades of purple in the bar chart. In each case, the lighter shade of purple extends a little bit longer than the darker shade. This lighter shade represents the possible additional valuation of Facebook shares if the IPO is priced at $35. The darker shade of purple presents the scenario where Facebook shares are priced at the low end of $28. The lighter shade of purple presents the additional possible valuation.
The presents of this lighter shade of purple is most present for the largest shareholders Accel Partners, Mark Zuckerberg, Digital Sky Technologies, Goldman Sachs, etc.
source: GMAT Pill
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