Feeds

Investors queue for chance to glance at Zuck's FACE

But scrutinising the BOOK might yet throw up some furballs

Choosing a cloud hosting partner with confidence

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.