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Facebook Surpasses Microsoft, Thanks To IPO

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Starting with today, Mark Zuckerberg is richer than Bill Gates himself. Facebook’s Initial Public Offering estimated at $11.8 billion, the biggest ever for an Internet company, has reinforced Zuckerberg`s status one of the world’s richest men and has introduced his social network among the highest-valued companies in the U.S.

Facebook Surpasses Microsoft, Thanks To IPO (Source: washingtonpost.com)

Facebook Surpasses Microsoft, Thanks To IPO 

Facebook is currently offering about 337.4 million shares for $28 to $35 each, according to a regulatory filing. Facebook and its shareholders could raise as much as $13.58 billion, so that it can get closer to Google`s IPO position estimated at $23 billion. Practically Zuckerberg’s stake would be $17.6 billion, making him richer than Microsoft`s CEO and the Russian steel billionaire, Vladimir Lisin, who are both twice his age, according to the Bloomberg Billionaires Index. Inside this empire, Zuckerberg controls about 57 percent of the voting power on capital stock, enough to sustain his personal hegemony.

The majority of analysts and fans worldwide expect that Facebook’s phenomenal rise to be continued, until the social network will include 1 billion users. In this scenario, the social network evoluting vertiginous in the last seven years, will be impossible to count as economical structure. Paul Saffo, managing director at Discern Analytics in San Francisco ask himself whether Zuckerberg can grow as quickly as his company has grown? or will he quit or force a bankrupt procedure?

Zuckerberg, who has developed a controversial, but still strong reputation for introducing new products quickly, helped the company take the place of MySpace as the most popular social service, while also enabling competitive threats for Google, Twitter and other social-media sites.The company has expanded its appeal by enabling developers to build applications on the platform itself, offering to users music, movies or e-commerce. All in all, Facebook created a sort of inner culture, which is quite impossible to be surpassed by rivals.

Facebook history is like a soap opera, in the end, who knows what will be the its next step. After starting the company in 2004, Facebook reached 1 million users by the end of its first year. Zuckerberg received a key investment from Peter Thiel, co-founder PayPal, later sold to EBay. It wasn’t until 2006, that Zuckerberg opened the service to the world and ended that year with12 million active users. In the years to come, Zuckerberg managed to convince investors to join the social network, such as Microsoft, Accel and Russian investor Digital Sky. After being sued by Yahoo in March for patent infringement, the company has been looking to buy intellectual property, such as the moment when Facebook spent $550 million on some of the patents Microsoft had purchased from AOL.

Facebook Surpasses Microsoft, Thanks To IPO (Source: msnbcmedia.msn.com)

Facebook Surpasses Microsoft, Thanks To IPO 

Facebook's next step is an the so-called IPO road show, where executive board talks to potential investors about why they should invest in the stock. On Thursday, Facebook posted a version of its road show online, as an authentic gesture of transparency. One of the most anticipated IPOs in history, Facebook's was preceded by those from smaller social Web companies such as professional networking service, LinkedIn and online game maker, Zynga.

Facebook's stock is expected to price on May 17 and make its public trading debut on May 18. The actual price could be higher or lower than Facebook's given range, depending on investor demand. Either you are a fan or not of Facebook, the financial move made by the social netwok is likely to be the headline of economics in the weeks to come, that`s certainly a fact.

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