How Does Facebook Compare to the World’s Biggest IPOs?

When Facebook released news that it will be going public around April 2012, we decided to investigate how the company will rank among its global public peers. Sources indicate that Facebook plans to raise $10 billion in its IPO, but the number isn’t breaking any records.

Where does Facebook fall on the global IPO scale? Find out by flipping through the gallery below. You might be surprised which companies have Facebook beat.

SEE ALSO: Everything You Need to Know About Facebook’s $100B IPO

Note: The proceeds are recorded in actual dollars at the time of public offering, and are not adjusted for inflation.


1. General Motors





Headquartered in Detroit, MI, GM owns Chevrolet, Buick, Cadillac and GMC.

Proceeds: $23.1 billion

Year: 2010

Image courtesy of Flickr, Crouchy69

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More About: Business, Facebook, features, ipo

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Here’s How People Look at Your Facebook Profile — Literally


When potential dates, employers and friends glance at your online social profiles, what do they see? EyeTrackShop, a startup that runs eye-tracking studies for advertisers, helped Mashable find out by applying its technology to the profile pages of popular social networks.

The study used the webcams of 30 participants to record their eye movements as they were shown profile pages from Facebook, Google+, LinkedIn, Flickr, YouTube, Klout, Reddit, Digg, Tumblr, Twitter, StumbleUpon and Pinterest at 10-second intervals. What participants looked at on each page and in what order is recorded in the images below.

It’s not a perfect study. Thirty is a small sample size, and what draws attention on a profile likely varies depending on the content displayed. But we’ve hazarded making a few observations:

  • Profile pictures matter. The site feature that attracted most attention on Klout, Facebook and StumbleUpon was the profile photo.
  • Job title garnered more attention than profile photo on LinkedIn. In fact, it got more attention than anything else on the page.
  • Who you know gets noticed. Even if for no better reason than their placement on the page, people do look at those little thumbnails of friends that appear on many social profiles. You can see this in the data from the Facebook, Google+, Twitter and Klout profiles.
  • Content on top wins. The further something is down a page, the fewer number of people look at it. This was true on both content-focused profiles such as Pinterest and Digg as well as socially focused profiles such as Facebook. On the Twitter and YouTube profiles, the effect was less extreme.

Take a gander at the results of the study in the gallery below, and let us know your own observations in the comments.


Facebook




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More About: digg, EyeTrackShop, Facebook, flickr, Google, klout, linkedin, pinterest, reddit, stumbleupon, trending, tumblr, Twitter, YouTube

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Flash Musical Surprises Holiday Shoppers [VIDEO]


Each day, Mashable highlights one noteworthy YouTube video. Check out all our viral video picks.

A New Jersey mall abruptly transforms into a stage for a short musical about Santa. One man breaks into song about how “you’re never too old, too old to sit on Santa” and soon a handful of mall occupants join in.

The mastermind behind this flash musical is Improv Everywhere, a comedic group known for causing fun, attention-grabbing scenes in public. You may remember the group’s flash musical about social media in May in which conference “attendees” sang about the joys of sharing stuff online (see the first video in the gallery below).

The mall Santa musical is part of Improv Everywhere’s Spontaneous Musicals project. To see the other videos, flip our gallery below. For a behind-the-scenes look at how the Santa musical was created, click here.


Gotta Share! The Musical


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More About: Holidays 2011, improv everywhere, Video, viral-video-of-the-day, YouTube

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Everything You Need to Know About Facebook’s $100B IPO


By now, you’ve probably seen the latest status update on Facebook’s IPO, and it’s a doosey: When the company goes public it will raise $10 billion, bringing its valuation to $100 billion

While the value of raising $10 billion is self-evident, Facebook has been a private company for seven years or so and seems to be humming along quite nicely. Why do Mark Zuckerberg and Co. want to open his books for investors and invite rude questions from analysts?

We tackled that question and more below, which is designed to be a primer for that most-anticipated of all social media IPOs.


Why is Facebook going public?


There are several reasons why a company typically goes public. In a recent paper by professors James Brau and Stanley Fawcett of Brigham Young University, the two outlined the usual motivations: To raise capital and to enrich the company’s founders and insiders. However, Facebook’s situation is a bit different. For Facebook, a better question might be “Why are they going public now as opposed to a couple of years ago?’”

One major reason is that private trading in the company is pretty much maxed out. Under U.S. laws, once you get 500 or more private shareholders, you have to publish detailed data about your company’s financial performance. Private trading in Facebook as well as Zynga, Twitter and the pre-IPO LinkedIn also drew scrutiny from the SEC last December.

In addition to the feds, though, Facebook also has to content with a rivalry from Google+. As The Economist notes, “Facebook will want to seek a listing before rivals erode its lead in the social-networking sphere.”

Finally, going public brings a set of headaches, which we’ll illustrate in the next question.


What’s the downside of going public?


There are a few, mostly the loss of privacy and scads of red tape. Facebook will now have to report quarterly and annual earnings as well as more juicy information, like the amount of shares that executives in the company hold.

SEE ALSO: How Does Facebook Compare to the World’s Biggest IPOs?

Another issue is Sarbanes-Oxley, the post-Enron reform Act that President George W. Bush signed into law in 2002. SOX, as it’s known, provides a new level of lawyer- and accountant-approved documentation for public firms and is to blame for the decline in U.S. IPOs over the last decade. However, proponents say SOX makes U.S. businesses more competitive because it forced American companies to clean up their books.


When will we know the exact value of Facebook’s shares?


Most likely, not until the night before Facebook goes public. Until then, Facebook will have to file an S-1 form with the SEC and then can file various amended versions (S-1/As), none of which will have much in the way of compelling information. “It’s boilerplate,” says Brau of the S-1s and amended S-1s. “It will be missing a lot of info.” Pricing information will be included in the final S-1/A, which will be made public just before Facebook shares are available.

Pricing will also depend on how Facebook brings its shares to the market. The typical course is to go with a firm commitment offering, which would offer shares at a set price to the underwriter. This can be a sweet deal for the underwriter if the shares are underpriced and is considered to be leaving money on the table for the about-to-go-public firm. Another option, made popular by Google’s 2004 IPO, is to offer shares via an auction. It’s not clear which route Facebook will take.


Will this be the biggest tech IPO ever?


Definitely. The next-largest tech IPO ever is one for Infineon, a German company that raised $5.9 billion in 2000. (Google’s IPO, which raised $1.9 billion, is number six on the list.) Facebook’s will hardly be the biggest IPO ever, though. That honor belongs to either General Motors, which raised $23.1 billion in 2010 or Nippon Telegraph, which raised $29.8 billion in 1987, in inflation-adjusted dollars.


How does Facebook compare to the world’s biggest IPOs?


Note: The proceeds are recorded in actual dollars at the time of public offering, and are not adjusted for inflation.


1. General Motors




Headquartered in Detroit, MI, GM owns Chevrolet, Buick, Cadillac and GMC.

Proceeds: $23.1 billion

Year: 2010

Image courtesy of Flickr, Crouchy69

Click here to view this gallery.

More About: Business, Facebook, features, ipo, Social Media, stock, Top Stories, trending

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Did the FTC Just Ruin Facebook?

Facebook magnifying glass

Mashable OP-ED: This post reflects the opinions of the author and not necessarily those of Mashable as a publication.

Now that the dust has settled and Facebook’s agreement with the Federal Trade Commission is clear, it’s time to assess the damage. What’s that you say? You don’t think there’ll be damage from an agreement that ostensibly promises two-decades’-worth of governmental privacy policy oversight for the world’s largest social network? Sorry, but I have to disagree.

Perhaps Facebook deserves this. It and CEO and founder Mark Zuckerberg’s privacy track record is spotty at best. The still-young CEO admitted as much in his long post-settlement statement, writing Facebook has “made a bunch of mistakes” in the privacy realm. Zuckerberg, though, also pointed out that Facebook had addressed most, if not all, of these mistakes prior to the FTC agreement and approaches product and privacy differently than it did before. He even listed 20 new privacy tools delivered in 18 months. Among them:

  • The ability to set which audience will see each post
  • Inline post-level privacy control
  • Groups
  • The Apps dashboard and Apps permission dialogue

I would agree that many of these changes have made Facebook a more private world. On the other hand, these very same changes often make the once familiar Facebook virtually unusable for everyday users (the “who moved my furniture?” syndrome).

The other issue is that many Facebook users still do not apply Facebook’s voluminous privacy settings. As a result, they’re often shocked at what has been shared beyond their relatively closed circles. For those who, like me, have enabled Facebook’s Timeline, the most surprising thing about it is exactly what Facebook is able to pull together and then display.

Most of this falls into the realm of annoyance. But to look at what the FTC has just pushed Zuckerberg and Facebook into, you’d think every one of Facebook’s 800 million users were encountering terrible privacy-related incidents every single moment.

Regular privacy audits by the U.S. government will likely be unpleasant for Zuckerberg and Co., but the internal changes could be just as damaging. Not only will Facebook institute its own biannual privacy audit, but now there will be two layers of privacy oversight within the company.

Chief Privacy Officer, Policy, Erin Egan should be a bit more outward facing, as she talks to government agencies and privacy groups. Still, that feedback loop will go right back into Facebook’s product pipeline. Likewise Michael Richter, Facebook’s Chief Privacy Officer, will join the product group to “to expand, improve and formalize our existing program of internal privacy review.” That’s more product feedback. More importantly, Richter is a lawyer. Have you ever handed a lawyer a contract? They pore over every single word and always err on the side of caution. Now imagine Richter doing the same thing with product development.

Facebook is, on its own, and thanks to the FTC, adding layer upon layer of oversight. The only logical outcome from this is fewer products and less innovation. That’s right; flashes of brilliance like Timeline could be few and far between as they get stuck in continual privacy review loops. Eagan, Richter and the FTC could all err on the side of caution, which essentially means steering the Facebook bus over to the shoulder and not driving at all.

This is your fault. Well, not yours exactly, but every single person who complained about privacy breaches as if someone was stealing their baby. You joined Facebook by the millions (along with a number of other prominent social networks) and have fully embraced all that they give you: new connections, more consistent interaction with close and distant relatives, discovery, entertainment and games, and a way to see your life as never before (you really need to check out Timeline). Yet, for every Facebook privacy misstep you sought to take Facebook and Zuckerberg to the woodshed.

Now, to be fair, those privacy breaches, though never malicious, usually had to do with Facebook looking for ways to monetize all that network activity. When people make mistakes based on profits, people get nervous and figure that the business does not have their best interest at heart. That’s likely true. I believe that Zuckerberg wants people to get the fullest and best Facebook experience, but he is well aware that it’s a business with huge infrastructure and operational costs. If Facebook is not a successful business, it eventually will no longer be a viable social network platform for the masses. In other words, business — making money — is a necessary evil here.

Mistakes made in the name of money-making strategies should be corrected, but why all the punishment? We often talk about the need for innovation and jobs in the U.S., but when a company aggressively pursues both, we often recoil in horror.

It’s hard to assess what the post-FTC agreement Facebook will look like. It will likely still innovate and grow, but will now operate with a degree of caution that will surely slow it down. No, the Facebook bus is not parked, but it may be traveling well below the speed limit—and you have only the FTC and yourselves to blame.


BONUS: Facebook Rolls Out New Privacy Features



Privacy Controls: Profile Editing




You can edit the visibility of individual parts of your profiles right from the profile editing page. In the past, this had to be done from the Privacy Settings page.

Click here to view this gallery.

More About: Facebook, FTC, privacy, Top Stories, trending

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YouTube Analytics Tells You the Tale of Your Videos


YouTube has replaced Insight, a tool that let users see detailed stats about their videos, with Analytics, which offers even more in-depth reports and stats.

Located at youtube.com/analytics, Analytics gives registered YouTube users all the data from Insight in a simpler design, with several nifty new options.

Users familiar with Google Analytics will quickly realize why the name change: YouTube Analytics is visually very similar to that tool.

It offers a summary report for your content on YouTube, a data filter that allows you to filter reports by content, geography and date, and an interactive map that accompanies most reports, showing you the geographic distribution of the metric you’re interested in.

You can now also easily see which videos are driving the most views and subscriptions for you, as well as how long viewers watched your videos. Finally, you can now download the currently displayed report (rather than all data).

If you cannot access Analytics, don’t worry: Google says it will be rolling it out to “everyone on a modern browser over the course of the day.” A detailed FAQ covering all the features of Analytics is available here.

More About: analytics, stats, trending, videos, YouTube

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Facebook Settles With FTC, Spotify to Launch Apps, YouTube Upgrades Analytics: Today’s Top Stories

Social Media News

Welcome to this morning’s edition of “First To Know,” a series in which we keep you in the know on what’s happening in the digital world. We’re keeping our eyes on five particular stories of interest today.

Zuckerberg: Facebook ‘Made a Bunch of Mistakes’ on Privacy

Facebook has agreed to a settlement with the FTC over charges that the social network had deceived its users about privacy.

Spotify to Launch App Ecosystem

At its first-ever press conference in New York Wednesday, Spotify is planning to launch apps to enhance its online music service, as well as open up its app platform to third-party developers, the Wall Street Journal reports.

YouTube Upgrades Analytics Dashboard

YouTube has replaced Insight, a tool that let users see detailed stats about their videos, with Analytics, which offers even more in-depth reports and stats.

AT&T Allowed to Withdraw FCC Bid for T-Mobile

The FCC has allowed AT&T to withdraw its application for a $39 billion deal that would have handed T-Mobile over to the nation’s second largest wireless carrier.

Adobe Acquires Efficient Frontier

Adobe is taking the plunge into ad buying with the pending purchase of Efficient Frontier, a company best known for helping marketers negotiate advertising on Facebook.

Further News

Image courtesy of iStockphoto, DNY59

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What the Facebook FTC Settlement Means for Social Media

Facebook magnifying glass

On Tuesday the Federal Trade Commission officially rapped Facebook’s knuckles in a broad-reaching settlement on privacy, alleging the social network misled its users on what they were sharing and with whom. The settlement, which lays out a number of specific rules the service must now abide by, requires Facebook to be much more transparent about its privacy practices going forward.

The thing is, Facebook was already doing that. Sure, the requirement that the company must now submit itself to biannual review from a third-party oversight board for the next 20 years sounds heavy, but it’s really not. As Mark Zuckerberg said in his response to the settlement, Facebook’s made a lot of mistakes with regard to user privacy, but it’s certainly learned from them, and its privacy controls now are stronger than ever. It’d be hard to see that third-party board finding much at fault with the Facebook of today, and, with Tuesday’s ruling, that’ll probably continue.

The effects of the settlement will likely have more to do with other social networks than the original one. The message from the FTC to social media is now clear: if you put the desires of advertisers before the privacy of users, you will be stopped. Just because you’re sitting on a ton of personal information that would make marketers drool, it doesn’t mean you can monetize it in any way you like.

While that sounds like a chilling message, it’s really just a long-overdue standardizing of the practice of opt-in. The smarter companies already know this: that customers who opt-in are more engaged and ultimately more valuable than customers who simply don’t opt-out. Besides, when given the option, users tend to share whatever information they’re asked to share, so, even putting the ethics aside, there’s little need for deception.

“Opt-in i think is where everything is going,” says Lou Kerner, a social media analyst with Wedbush Securities, a Los Angeles-based investment bank. “Most people will opt-in to almost anything. A lot of younger people assume all the information is freely available anyway. And there are many people who think that using your data to see marketing that’s actually relevant to you is a good thing.”

Still, those dialog windows that pop up whenever a Facebook app wants to connect with your profile are vague at best. You typically see similar conditions (“This app can access your profile information at any time,” “This app can send you emails,” “This app knows each and every piece of information you’ve ever shared with anyone,” etc.) for most apps. It would be much more useful if those conditions had something specific to the app you’re dealing with, along with an example or two (“Zynga poker wants to see your friends so you can play cards with them”). Maybe Michael Richter, Facebook’s new Chief Privacy Officer of Products, could give that a look.

Besides the clear move toward opt-in, another lesson social networks can learn from Facebook’s FTC settlement is how to deal with government. While the FTC had some strong words for Facebook, going so far as to say it “deceived” users in the past, it also praised the network for being an innovator and changing the way society communicates. And in the end, the tangible effect of the agreement amounts to a slap on the wrist for the social network. Clearly, Facebook has learned to play nice with Washington, and any other service that deals with the perennial hot-button issue of privacy should take note.

“I think it’s a hugely positive step,” says Dmitry Shapiro, CEO of the social network Anybeat. “But more important is consumers’ understanding of what these technologies are being used for. We’ve been taught these past few years to just ‘share everything,’ and I don’t think consumers really know what can happen [with their data].”

As far as Facebook’s users are concerned, I doubt they will notice any change after today’s development. Will there be complaints about Facebook with regard to privacy in the future? Of course. But the settlement provides a template for transparency, so when, say, Facebook’s facial-recognition software fully blossoms, you won’t start seeing your face in ads unless you opt-in. If Zuckerberg’s statement is any indication, Facebook appears to have learned a thing or two after setting off so many privacy tripwires over the years. And if it hasn’t, Uncle Sam is watching.

More About: Facebook, FTC, Google, Social Media

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Goodbye, Google Bar: Black Strip Turns Into Pop-Up


If you use Gmail, Google Reader, Google+, Google Search, Google Maps — indeed, just about any Google product — you’ve likely become familiar with that black strip across the top of the screen with links to the company’s other services. Google introduced it back in June. Opinions have varied ever since, but many of us have gone with: what on Earth is that ugly thing?

Wonder no longer, because the black bar is going away. In a blog post Wednesday, Google announced it would be replaced with a pop-up that appears when you mouse over the Google logo. There will also be a smaller, less obtrusive light grey bar dominated by a search box.

“Instead of the horizontal black bar at the top of the page, you’ll now find links to your services in a new drop-down Google menu nested under the Google logo,” writes technical lead Eddie Kessler — whose Google profile identifies him as a “cat herder” — in an official announcement blog post. “We’ll show you a list of links and you can access additional services by hovering over the “More” link at the bottom of the list. Click on what you want, and you’re off.”

Kessler describes the new setup as “the next stage in our redesign.” What remains unclear is why Google’s redesign had to go through a “black bar” phase in its evolution in the first place. This is, perhaps, best seen as an illustration of something we’ve pointed out before: that Google’s entire design aesthetic is uninspired and haphazard. We’re still waiting for the company to find its Jonathan Ive of web design.


Detail of Gmail's Latest Interface





The new desktop version of Gmail is hardly recognizable as the Gmail we once knew.

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More About: design, Google, redesign

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What to Expect From Spotify’s ‘New Direction’ Event

Spotify Events

As Spotify gears up for its first-ever U.S. press conference in New York City on Wednesday, speculation is heating up about exactly what the streaming music service will announce.

All Things Digital is reporting that the company is likely to announce that third-party developers can make Spotify’s music library available to their own users. These users would then in turn have to pay Spotify for privileges. However, Spotify declined to comment on whether the event will include news about the company expanding its application programming interface (API).

It’s also rumored that an iPad app and a new music store where members can purchase songs directly from the service could also arrive. The latter is a more likely guess since it’s already possible for European Spotify members to buy songs from the streaming service.

Spotify – which arrived on U.S. shores just four months ago – sent out press invitations last week announcing that it has “exciting news” to share about a “new direction” the company is taking. The event called “What’s next for Spotify?” will stream online and should feature a special guest or two, along with CEO Daniel Ek.

Spotify has been under pressure recently from competitors such as Google Music, the recently-unveiled free service that allows users to upload, share and browse songs, and then listen to them on the go via cloud storage on Android devices.

There has also been an increase in concern among music partners about the impact of streaming on their business. More than 200 labels and publishers pulled out of various streaming services, from Spotify to Napster and Rdio, after a study claimed streaming music was hurting record sales.

Since this will be the company’s first time addressing the press in this manner – it didn’t even hold a press conference for its U.S. launch – buzz surrounding the event has been big.

Some experts believe that if Spotify opens up its platform to third-party developers, the music industry would be more open to a “music everywhere” concept, similar to how the TV industry gave cable customers access to watch TV programming online and via iPad apps, according to All Things Digital. The move could also entice more Spotify users to sign up for paid accounts instead of using its basic free model.

Spotify’s business is growing fast, helped along by its expansion onto Facebook. In addition, the company recently announced that its premium subscription growth doubled in the last year to 2.5 million, making it the largest music subscription service on the Internet. But with the addition of third-party developers having access to the site’s catalog, the growth could be much larger.

“What’s next for Spotify?” will kick off at 11:30 a.m. EST on Wednesday and Mashable will be there live blogging the event.

More About: Music, spotify, streaming

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