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    Facebook Hires New CFO – IPO Coming?

    By Stock Charts | July 25, 2007




    Facebook LogoFacebook’s rejection of huge offers from big name companies such as Yahoo and Viacom and their recent flurry of finance related job hires points to a possible IPO filing in the works. The latest headlines report former YouTube Chief Financial Officer Gideon Yu as Facebook’s new CFO, replacing prior finance chief Michael Sheridan, in the latest step toward a potential initial public offering (IPO).

    Facebook is the largest independent player at the center of the Internet industry’s hottest trend — the shift to mini Web applications known as “widgets” which consumers can choose to add to their own sites. In effect, the Web is acting like a software operating system to distribute programs to users, much the way desktop computers and packaged software have done.

    Two weeks ago, Facebook board member and financial backer Jim Breyer, a partner at venture capital firm Accel Partners, said the company would do well over $100 million in revenue in 2007, turn a profit, and have significant positive cash flow.

    Source: (Reuters)

    Some obstacle that Facebook might face on the road to IPO include low quality advertising, low click through rates, and a lawsuit that accuses Zuckerberg of stealing the idea for Facebook from fellow students at Harvard who say they had hired him to create a site called Harvard Connection in late 2003. Here’s a relevant article over at SelfInvestors.com with more information.

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    Topics: Stock Charts, Stock News | 1 Comment »

    One Response to “Facebook Hires New CFO – IPO Coming?”

    1. Zach Says:
      July 29th, 2007 at 4:49 pm

      I would definitely get excited about participating in a facebook IPO. So far this year, technology new issues have been the strongest. Facebook would fit in that category as well as being media related. If and when they file the prospectus it will be interesting to see just how much revenue they are able to generate per user and how scalable the business model is. I suspect margins get geometrically better as the number of new users grows.

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