Feeds

Facebook to halt secondary market trading ahead of IPO - report

Let's sell this bubble before it bursts ... bitch

Security for virtualized datacentres

Facebook is reportedly set to freeze secondary market trading next week ahead of its plan to take the company public in May.

The world's biggest social network will temporarily stop the sale of its shares as part of its preparation to table its initial public offering, regulatory filings for which first landed in February this year.

Bloomberg reported the plan to halt the sale of shares on the secondary market yesterday and cited an anonymous tipster familiar with the plan.

It's understood that Facebook wants to get a better grip on its shareholder base ahead of floating the company on Wall Street where it hopes to trade under the "FB" ticker. The move should also help steady the social network's IPO valuation for bankers and investors.

Facebook is hoping to raise $5bn in its road to going public, with the Mark Zuckerberg-run outfit gunning for a record-breaking Silicon Valley price tag of $100bn.

The company amended its S-1 filing with the US Securities and Exchange Commission for the third time on Tuesday, providing an update on its patent dispute with Yahoo! and a little more detail on location settings for mobile users on Facebook.

Earlier this month, Yahoo! filed a lawsuit against Facebook in California claiming that the company infringed patents relating to advertising, social networking, privacy, customisation and messaging for which the ailing Purple Palace is seeking damages, an injunction and a "damage multiplier".

"If an unfavorable outcome were to occur in this litigation, the impact could be material to our business, financial condition, or results of operations," Facebook admitted in its updated filing.

It also explained that a mobile device user's geographic location may be inaccurate - a fact that could upset Facebook's customers.

"[A] mobile-only user may appear to be accessing Facebook from the location of the proxy server that the user connects to rather than from the user’s actual location," it noted.

"If advertisers, developers, or investors do not perceive our user metrics to be accurate representations of our user base, or if we discover material inaccuracies in our user metrics, our reputation may be harmed and advertisers and developers may be less willing to allocate their budgets or resources to Facebook, which could negatively affect our business and financial results." ®

Providing a secure and efficient Helpdesk

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.