Facebook.com IPO on Nasdaq – How to raise Billions of Dollars – a Case Study
Facebook.com is on the IPO watch list for several banks, investment managers and experienced Tech Investors like the German Samwer brothers, Li Ka Shing from Hongkong and many more. Facebook already managed to get access to High Profile Investors from North America, Russia, Europe and ASIA.
But where is the retail banking story? As markets are loaded with liquidity and stocks are turning bullish again the timing for an IPO is excellent. NOW!
So far facebook.com which was founded on February 1st, 2004 is located in Palo Alto, California, United States and has raised approximately $716M accoding to Techcrunch
But how to raise Billions of Dollars ?! Case Study by Spirofrog Founder Thomas Schulze ( all rights reserved )
As of July 15th 2009, Facebook had 250 million active users which equals to the 4 largest country in the world just after CHINA, INDIA and the USA. ( The German Network XING is valued @200 Millions Dollars with 8 Million Users.)
Here´s our 5Cents:
Facebook dominates the Social Networks market and is at around 500 Million revenues per year – maybe 700 millions in 2009.
Case Study facebook:
Other players like XING, LinkedIN introduced premium memberships – we would introduce “lifetime” memberships – which equals to facebook shareholders.
Facebook.com / Facebook.Inc set the stage for an IPO – as they hired a New CFO just recently as we reported.
I would IPO – a different way !
Prepare an IPO and get access to potential 250 Million Shareholders 
Facebook is the largest email Newsletter to retail Investors !
Offer a lifetime ( or 2years ) membership in exchange for ONE SHARE of Facebook that is soon listed on the NASDAQ stock market.
Google´s price was around 80 Dollars back in 2004 each share.
What´s facebook´s Valuation ? Is facebook´s valuation 100 billion $ ´s ? according to our model!
The last price was 6,5 billion as the Russian Investor entered the game! – But 100 Billion is possible
If Facebook would go public – the price of Facebook´s share could be 100 Dollars each – combined with the “Premium Life Time ” membership for the features offered today.
At least 5-10 % percent of facebook users would buy that stock as they are tech aware plus they get a lifetime usage of their beloved facebook platform.
Additionally this leads to “sticky” customers on the platform to introduce new services, like payment, hotel & travel, rent a cars, shopping, gaming….
If 10 Percent ( = 25 Mio Users ) would buy that Stock ( membership ) – Facebook Inc. would raise an easy 2,5 Billion Dollars not even paying immense Banking / Retail Fees. And then raise another 10 Billion from High Networths, funds etc. and go Public ( IPO ) on the Nasdaq (QQQ).
With 12,5 Billion in Cash this would price facebook at this growth rate at 100 Billion Dollars easily which is close to Google and Cisco Systems.
The German network XING is at a 8-13 % Premium Rate based on their user base of around 8 Million Users charging around 200 Dollars for a 2 Year membership.
Plus all facebook users get a share of their platform they use everyday.
All comments welcome !
Thomas Schulze ( SPIROFROG Founder )
More Information on Facebook:
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Nice plan. Capitalzing in an honest and open way by giving back to those that made you big.
Should be an interesting option for all companies that are community-driven!
Jan
Facebook already changed the world. An IPO is the logical result of a very successfull startup. Facebook demonstrates, how you can set up a new thing in quite short time!
Tom
Die Idee ist doch mehr als genial.
Ich würde mit Sicherheit auch zeichnen…
Marco
Well, I am not the IPO expert, but I’ll buy a share
@Thomas Uhl: actuially Facebook has existed for years before it reached the German radar. And in its inceton it was not ‘new’. It was a vertical network for academics or pupils.
It became revolutionary when it added viral apps.
thomas, that’s really a great idea, but I’ve no idea if it’s feasible anyhow…
that´s an intersting model!
we like that idea! they´ve done an excellent job on translating
based on their user base! Crowd translating – great idea
Nice and very interesting model. I would buy a share … be part of it.
greetings,
ben
A great idea. The only thing that remains open: “How do you send out 300 million gifts (300.000.000 x 80 lets say = 2,4 billion USD)” and have at the same time the right valuation.
Otherwise a great idea.
Best
Harald
PS: Become a Fan of my FanPage
wow, what kind of shareholder meetings this will get us in the future, needs tons of sausages
an IPO is highly likely, first quarter 2010 is my bet.