|
So it is written, so it shall be done: Facebook is going public. The $80 billion company has asked the US Securities & Exchange Commission (SEC) for approval to issue $5 billion in shares. Mark Zuckerberg and his peeps will retain 57% of the company, which he vows to continue to run “hacker style” with a mission “to make the world more open and connected.”
The regulatory filing revealed all kinds of information about Zuck’s baby and its 845 million friends… in 2011 Facebook generated $3.7 billion in revenues - 88% more than in 2010. Ads brought in 83% of that money and fees from Zynga contributed 12%. Other games and apps made up the remainder. Profits (non-existent before 2010) rose to $1 billion in 2011, up 65% over last year (thanks to COO Sheryl Sandberg!).
Welcome to the new 1%... The listing day for Facebook shares will be determined after the SEC reviews the application. There’s a good chance it will come just in time for Zuck’s 28th birthday in May. Nice $23 billion gift to his personal fortune! Original co-founders (did you see The Social Network?) Dustin Moskovitz and Eduardo Saverin will make $6 billion and $4 billion respectively. The first FB president and all-around maverick Sean Parker will make over $3 billion, while the first financier of FB, Peter Thiel, will pick up an extra $2 billion. Analysts estimate that more than 1,000 Facebook employees with stock options will become instant millionaires. Good friends to have…
Meanwhile, back in Canada an already public company goes even more public… Scotiabank (TSX:BNS) announced it will issue 30 million new common shares at $50.25 each, in order to raise $1.5 billion in cash. All banks are under pressure to improve their capital ratios – meaning: how much of its own money the bank keeps on hand (aka capital) versus the amount of client money it holds (aka assets). This is due to new minimum capital requirements according to the global Basel Committee on Banking Supervision. The purpose is to make sure that banks will stay solvent even in the face of a financial crisis. (It’s kind of like making sure you always have more in your chequing account than what you owe on your credit card.) Canadian banks have historically had stronger capital ratios than US and European banks, but it’s all about keeping up with the times…
And then there’s the public company that wants to go un-public… One of Italy’s best known brands, Benetton Group (BIT:BNG), is listed on the Borsa Italiana stock exchange in Milan. But not for long. The Benetton family, which owns 67.1% of the shares, has offered to buy out all other shareholders and delist the company. Seems like a good move, since the shares lost 40% of their value in 2011 and the sweater-making business is in dire need of mending. The Benettons offered €4.60 per share, for a total pay-out of $365 million. Investors responded by buying more, boosting the share price higher than the Benetton family offer price. This sets the stage for investors to demand a higher price from la famiglia - though if you recall the Benetton pope kissing ads earlier this year, you’ll remember this is not a company to shy away from a little drama…
|
