So does Facebook's marketing revenue justify the 5billion IPO? Analysts speculate investors could be tapped for closer to 10 billion according to recent article in Reuters. http://www.reuters.com/article/2012/02/02/us-facebook-ipo-idUSTRE80U29V20120202
"Its IPO prospectus shows that Facebook generated $3.71 billion in revenue and made $1 billion in net profit last year, up 65 percent from the $606 million it made in 2010." (Reuters)
Does this IPO have anything to do with the new "Time Line" format that Facebook introduced this year? Apparently so... "Facebook aims to be more attractive to potential large advertisers. It has improved its ad targeting capabilities as it collects user data through new features such as the Timeline, said George John, founder of Rocket Fuel, a digital marketing company."
It's interesting that while Zuckerberg, who would become the 4th richest man in America if Facebook is indeed valued at 10billion due to his 28% retained ownership, claims that the money is to fund a better service rather than the service becoming a product with its own purpose of generating revenue.
My cynical mind sees the new time-line format as an improvement for marketers more than an improvement for users. In 2011 Facebook earned 69% of its revenue from ads and another 12% from Zynga games (which run their own ads).
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