Facebook (A) Harvard Case Solution & Analysis

When did Facebook first “go live”? What was the name of the company based on?

Facebook was launched in February 2004. Its founders are Mark Zuckerberg and his fellows that includes Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes. The name of the company was Facebook. Initially it was for Harvard University only. Later it expanded to other schools and then to businesses as well. Its growth was really extraordinary. Finally in 2006, Facebook was introduced in the whole word. The social network founded by few university students had gained grounds in no time, and became a popular social networking site by 2008. Currently more than 500 million people are using Facebook.

What is advertising based on social context?

Facebook offers advertising for its users. People can advertise their product and meet their prospective customers without compromising the privacy of both. Facebook has a clear policy on data usage and privacy. People can advertise their social content by paying to Facebook. They can promote their pages and groups through advertisement.

What is Zuckerberg’s effective voting control following the IPO? Briefly describe how this was structured using information in the S-1. What were actual advertising revenues, payments and other fees revenue, and total revenues for 2010, 2011 and 1Q12 according to their S-1 filing dated May 9, 2012?

Facebook held its Initial Public Offering (IPO) on Friday, 18 may 2012. This offering was warmly welcomed by the market. The Capitalization was over $104 Billion. Mark Zukerberg’s effective voting control after the IPO was approximately 57%. This control was necessary for Mark Zuckerberg to retain the ownership of the company. Furthermore, company has taken some other steps too to solidify the control of Mark Zuckerberg over Facebook.

The S-1 filling is a form that is used by the company for their Initial Public Offering (IPO) as well as Facebook S-1 filling is a vast documentation that consist of different information and description about the Facebook as well it also include the standard rules and regulations. Likewise, it also includes many hints related to how Facebook is going to be structured as well as how it works. The S-1 filling helped the Facebook in order to go public and offer Initial Public Offering (IPO).

The actual revenue of advertising for the year 2010 was $1,869 million whereas the payments and other fee in the year 2010 were $105 million .However, the total revenue of the Facebook in the year 2010 was $1,974 million. Moreover, the actual revenue of advertising for the year 2011 was $3,154 million whereas the payments and other fee in the year 2011 were $557 million. In addition to this, the total revenue of the Facebook in the year .........................

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Facebook was one of the many social networking sites (such as MySpace.com), which began in 2004. Free access site that allows users to connect and interact with other people, Facebook has been extremely popular with millions of active users. Of course, putting questionable content on their Facebook page can be a source of embarrassment. In this case, a consulting firm manager Miranda Shaw is trying to decide between two qualified candidates for a position in their company. She is inclined to hire a candidate, until she finds a photo on his Facebook page about it in the wrong part of the (smoking pot, etc.) at the college. The show is no longer sure of his decision. This case gives a quick and simple way to look at the issues, confidentiality, and other social networking sites.
This Darden study. "Hide
by R. Edward Freeman, Bidhan Parmar, Jenny Mead Source: Darden School of Business 2 pages. Publication Date: April 30, 2008. Prod. #: UV1164-PDF-ENG

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