Feeds

Investors queue for chance to glance at Zuck's FACE

But scrutinising the BOOK might yet throw up some furballs

Build a business case: developing custom apps

Mark Zuckerberg told investors yesterday that he wouldn't hesitate to splurge another $1bn on a Web2.0 app.

The Facebook boss presented his initial public offering plans to hundreds of money peeps in New York on Monday ahead of floating the company on 18 May.

He defended his decision to buy photo-sharing outfit Instagram for more than $1bn in a deal that was personally struck by Zuck without any involvement from Facebook's board members.

The 27-year-old founder of the world's biggest social networking website has some investors concerned over his audacious moves – the Instagram deal being the most recent example.

Yes, it's so great that a billionaire is ONE OF US

However, Facebook is looking to raise as much as $10bn and yesterday at the Sheraton Hotel in New York people were reportedly queuing up around the block to catch a glimpse of copper-haired Zuckerberg, who was in the Big Apple to present his IPO to investors.

After the buzz around Facebook's roadshow dies down, Zuck will have about 57 per cent voting control of the company and will own roughly 23 per cent of the stock.

The value of the dominant social network could reach as high as $96bn assuming Facebook can convince those investors queuing out the door yesterday that the company has many years of potential growth ahead of it.

But there remain big areas where Zuckerberg – whose outfit saw profits fall in its last quarter – could yet stumble. Facebook isn't operating in China right now, but would like to in order to grow its now-slowing userbase, which is closing in on 1 billion people signed up to the network.

The company has yet to make any cash out of serving ads via mobile devices, even though Facebook's app is heavily used on smartphones.

It did begin inserting so-called "sponsored stories" into its News Feed function on the network in March this year, which means that investors will get a quick peek at what sort of revenue Facebook might be able to derive from mobile ads only after the roadshow has packed up and gone home. ®

7 Elements of Radically Simple OS Migration

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?