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Writer's pictureUdaiVeer Middha

The World's Largest Social Media Platform - Facebook

Facebook, Inc. is an American technology group based in Menlo Park, California. It was founded by Mark Zuckerberg with his fellow roommates and students at Harvard College, was Eduardo Severin, Andrew McCollum, Dustin Moskowitz, and Chris Hughes, originally from TheFacebook.com-today Facebook, a popular global social networking service Were in the form. It is one of the most valuable companies in the world. It is considered one of the Big Five companies in American information technology, along with Google, Apple, Microsoft, and Amazon.


Facebook offers other products and services beyond its social networking platform, including Facebook Messenger, Facebook Watch, and Facebook Portal. It has also acquired Instagram, WhatsApp, Oculus, Giphy, and Mapillary, and holds a 9.9% stake in Jio platforms


Facebook filed for an initial public offering (IPO) on February 1, 2012. The initial prospectus stated that the company sought to raise $ 5 billion, the company had 845 million active monthly users, and its website had 2.7 billion daily likes and comments. Following the IPO, Zuckerberg will retain a 22% ownership stake in Facebook and own 57% of the voting shares.


The underwriter valued the shares at $ 38 each, valuing the company at $ 104 billion, the largest valuation to date for a new public company. On 16 May, the day before the IPO, Fathaok announced that it would sell 25% more shares than originally planned due to high demand. The IPO raised $ 16 billion, making it the third-largest in American history (ahead of AT&T Wireless and behind only General Motors and Visa). The stock price left the company with a high market capitalization, but surpassed giants such as Amazon, McDonald's, Disney, and Kraft Foods, making Zuckerberg's stock $ 19 billion. The New York Times said the offering overcame questions about Facebook's difficulties in attracting advertisers to convert the company to "compulsory stock". Jimmy Lee of JPMorgan Chase described it as "the next great blue-chip". On the other hand, the authors of TechCrunch expressed skepticism, "This is a huge multiplier to live up to, and Facebook will need to add bold new revenue streams to justify huge valuations".


Trading in the stock, which began on May 18, was delayed that day due to technical problems with the NASDAQ exchange. The stock struggled to stay above the IPO price for most of the day, forcing the underwriters to buy back the shares to support the price. At Closing Bell, the shares were valued at $ 38.23, only $ 0.23 above the IPO price and $ 3.82 below the opening bell price. The inauguration was widely described by the financial press as a disappointment. Nevertheless, the stock has set a new record for the trading volume of the IPO. On May 25, 2012, the stock finished its first full week at $ 31.91, a 16.5% drop.


On May 22, 2012, regulators from the Financial Industry Regulatory Authority of Wall Street announced that they had begun an investigation into whether banks underwriting Facebook incorrectly shared information with only select customers rather than the general public. Has Massachusetts Secretary of State William Galvin summoned Morgan Stanley on the same issue? The allegations sparked "fury" among some investors and prompted the immediate filing of several lawsuits, one of them a class action suit claiming more than $ 2.5 billion in damages due to the IPO. Bloomberg has estimated that retail investors would have lost about $ 630 million since their debut on the Facebook stock.


Standard & Poor's added Facebook, Inc. to its S&P 500 index on December 21, 2013.


On 2 May 2014, Zuckerberg announced that the company would change its internal motto from "Move Fast and Break Things" to "Stable Fast with Stable Infrastructure". The earlier motto was described in Zuckerberg's "key directions for his developers and team" in a 2009 interview in Business Insider, in which he also stated, "Unless you're breaking stuff, You're not moving fast. "


In May 2019, Facebook established the Libra network, reportedly to develop its stable coinage cryptocurrency. In recent developments, it has been reported that Tula is being supported by financial companies such as Visa, MasterCard, PayPal, and Uber. The consortium of companies is expected to pool in $ 10 million for funding for the launch of a cryptocurrency coin named Libra. Based on approval from the Swiss Financial Market Supervisory Authority to operate as a payment service, the Libra Association plans to launch a limited-format cryptocurrency in 2021.



Mergers & Acquisitions


During its existence, Facebook has acquired several companies (often identified as talent acquisition).


Its first major acquisition was in April 2012, when it acquired Instagram for approximately US $ 1 billion in cash and stock.


In October 2013, Facebook acquired Onavo, an Israeli mobile web analytics company.


In February 2014, Facebook announced that it would buy mobile messaging company WhatsApp for the US $ 19 billion in cash and stock. Later that year, Facebook bought Oculus VR for $ 2.3 billion in stock and cash, which released its first consumer virtual reality headset in 2014.


In late July 2019, the company announced that it was under antitrust investigation by the Federal Trade Commission.

In late November 2019, Facebook announced the acquisition of game developer Beat Games, which is responsible for developing one of the year's most popular VR titles, Beat Saber.


In April 2020, Facebook announced a $ 5.7 billion deal with Indian multinational Reliance Industries, which includes about 10 percent of Jio Platforms, Reliance's digital media and services unit.

In May 2020, Facebook announced that they had acquired Giphy for a cash price of $ 400 million. It will be integrated with the Instagram team.

Facebook announced in November 2020 that they planned to purchase customer-service platforms and chatbot specialist startup Customers to promote companies to use their platforms for business. It has been reported that customers are worth a little over $ 1 billion.


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Manish Middha
Manish Middha
May 15, 2021

Acquisitions and more acquisitions is what these pioneers do.

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