Facebook IPO: What is in the S-1 to convice you its a good buy?

Facebook’s IPO is going to be as big if not bigger than Google was a few years ago. The S-1 filling document is a very lengthy dry read that most people will skip. We are not most people. The S1 was very insightful. For one thing we don’t have to wonder if Zuck would still be in charge. He will have the most votes based on his type of stock. The shares will be split into “A” and “B” shares, where the latter get 10 votes per share, and the former get one. Zuckerberg presently owns around 28.2% of the share capital.

Facebook had revenues of $3.7bn and had an operating income of $1.7bn.
They had 845 million active users and the numbers are still growing.

Saying Facebook depends on advertising is a common sense but what surprised us is that it only accounts for 85% of the revenue. The rest comes from in-app purchases.

Zynga is almost as important as Mark is for the company. In 2011, they were 12% of Facebook’s revenue. Facebook wrote in that “If the use of Zynga games on our Platform declines, if Zynga launches games on or migrates games to competing platforms, or if we fail to maintain good relations with Zynga, we may lose Zynga as a significant Platform developer and our financial results may be adversely affected.”

The mobile version of the site had 425 million monthly active users in December 2011. There are no ads on the mobile site but that may soon change. The S1 states, “our revenue may be negatively affected unless and until we include ads or sponsored stories on our mobile apps and mobile website. We believe that people around the world will continue to increase their use of Facebook from mobile devices, and that some of this mobile usage has been and will continue to be a substitute for use of Facebook through personal computers. In 2011, we began serving our products from data centers owned by Facebook using servers specifically designed for us.” I wonder will the servers help place ads on mobile devices?

There are 138m shares that have been issued to the employees of Facebook for $0.83. At an expected price of about $45, that’s almost $6.2bn profit for the employees. That is not a bad turn around for a 401K plan.

Walmart set to take on Angry Birds? Not just yet but soon

Wal-Mart has been taking over the world for a while. It seems the next step for them is the iOS marketplace. There acquisition of an iOS development company named Small Society is a big first step in that direction.

Small Society has worked on apps for various companies but notably Starbucks, ZipCar, and Whole Foods. Small Society will be integrated into WalmartLabs’ incubator division.

SecondMarket making more money

For companies that are not yet ready to go public, SecondMarket has become the best place to raise capital. This is the only place where you can buy Facebook stock the Holy Grail of IPOs. The recent series C investment raises its valuation to $200 million, according to the Wall Street Journal.

The founder of Social+Capital Partnership recently invested $17 million in enterprise social network, Yammer said the following in a statement: “SecondMarket has become the preeminent platform for private company shares enabling companies to meet their liquidity needs, help retain and reward talent, and provide start-ups with an opportunity to monetize and grow their businesses.”

Cantor Fitzgerald & Co. and Liquidnet in the last few months have become competition for SeconMarket. Both have expanded their portfolios to include pre-IPO trading of shares.

FCC to AT&T: ‘Show me the jobs’

I’m sure you have seen the new AT&T adds pulling on Americans heart strings professing that their billion dollar merger will bring jobs. They says it was not the intent but it will be a byproduct. In this age of high unemployment, it’s a great ad campaign. Too good it turns out. It has caught the attention of the chief of the Federal Communication Commission’s Wireless Telecommunications Bureau.

Mr. Rick Kaplan is asking AT&T to clarify how the proposed merger with T-Mobile USA will add jobs in the United States. “Our review of the information currently in our record suggests that AT&T’s responses on this issue remain incomplete,” Kaplan said. The FCC is giving AT&T until October 31st to address fully “all plans, analyses and reports discussing the creation or loss of jobs” if the merger is approved.

AT&T must also disclose how many T-Mobile USA jobs will be eliminated and show how the merger will affect employment inside and outside of the United States during the next five years. AT&T CEO Randall L. Stephenson argued earlier this year that the proposed merger would be a “net job grower” in the United States. Now it’s time to walk the talk with some facts. Hopefully these facts are not full of fuzzy math.

After the death of Apple co-founder Steve Jobs, President Obama released this statement:

President Obama had this to say about Steve Jobs:

Michelle and I are saddened to learn of the passing of Steve Jobs. Steve was among the greatest of American innovators – brave enough to think differently, bold enough to believe he could change the world, and talented enough to do it.

By building one of the planet’s most successful companies from his garage, he exemplified the spirit of American ingenuity. By making computers personal and putting the internet in our pockets, he made the information revolution not only accessible, but intuitive and fun. And by turning his talents to storytelling, he has brought joy to millions of children and grownups alike. Steve was fond of saying that he lived every day like it was his last. Because he did, he transformed our lives, redefined entire industries, and achieved one of the rarest feats in human history: he changed the way each of us sees the world.

The world has lost a visionary. And there may be no greater tribute to Steve’s success than the fact that much of the world learned of his passing on a device he invented. Michelle and I send our thoughts and prayers to Steve’s wife Laurene, his family, and all those who loved him.

Steve Jobs died today: a great man has passed. He changed the face of technology around the world and will be missed.

Statement from Apple is below:

We are deeply saddened to announce that Steve Jobs passed away today. Steve’s brilliance, passion and energy were the source of countless innovations that enrich and improve all of our lives. The world is immeasurably better because of Steve. His greatest love was for his wife, Laurene, and his family. Our hearts go out to them and to all who were touched by his extraordinary gifts.

You can leave your thoughts on the Apple site. They have set up an email at rememberingsteve@apple.com.

They also set up a website for him at http://www.apple.com/stevejobs/

Tim Cook had this to say to Apple employees:

Team,
I have some very sad news to share with all of you. Steve passed away earlier today.
Apple has lost a visionary and creative genius, and the world has lost an amazing human being. Those of us who have been fortunate enough to know and work with Steve have lost a dear friend and an inspiring mentor. Steve leaves behind a company that only he could have built, and his spirit will forever be the foundation of Apple.

We are planning a celebration of Steve’s extraordinary life for Apple employees that will take place soon. If you would like to share your thoughts, memories and condolences in the interim, you can simply email rememberingsteve@apple.com.

No words can adequately express our sadness at Steve’s death or our gratitude for the opportunity to work with him. We will honor his memory by dedicating ourselves to continuing the work he loved so much.

Tim

No iPhone 5? Would Apple disappoint you like that? Yes they would, here’s why

Even though there are only two days left until Apple has its big day the rumors continue. They might continue up to the last moment. To call all the rumors that have been flying around abundant, would be an understatement. The newest rumor however has this part-time Apple fan-boy and Apple Hater a little worried. Everyone and their mother is expecting Apple to unveil the iPhone 5 this Tuesday October 4th but disappointment may be had instead.

There is new evidence that suggest the next Apple money maker will not be an iPhone 5 but instead an iPhone 4S. That would really catch people off guard. One has to ask, would Apple really release something people are not asking for? The answer is a great big yes. Apple does not care about what customers want. Apple rather make great products and give customers what they need. The iPhone 5 many be what people are expecting but not what Apple feels you need at the moment. Remember the iPhone 3GS?

What is this rumor based on? Every rumor has at least a grain of fact in it. Fact 1: The new iTunes developer beta has references to a CDMA iPhone 4S. Fact 2: Apple’s inventory system has references to an iPhone 4S with the codename “N94AP.” What does it all mean? Well nobody actually knows what Apple is planning. iPhone 4S, iPhone 5 or even iTouch maybe on display this week. One thing is for sure, what ever Apple decides to share with the public; people are going to go crazy over it then buy it. That is the Apple way.

Occupy Wall Street is more than a trending topic; real arrest and protest

While you were watching football a protest was growing in Brooklyn. Members of the Occupy Wall Street took over the Brooklyn Bridge this afternoon. The protest caused massive traffic delays. The cops had agreed to let the protesters use one side of the bridge but must have forgotten. When protesters were half way over the bridge they started to be arrested. The arrests marked the second Saturday in a row the protesters had issues with the cops.

Over 700 were arrested today and just last week cops arrested about 80 people near Union Square. There was lots of rage when a few women were pepper sprayed during the arrest. In this day of always connected, it did not take long to have a clip end up on the internet. The video helped bring attention to the movement. That might explain the turnout today despite the rain.

The members of Occupy Wall Street are not allowed to use megaphones so they have started to use the old school low-tech workaround; posters and the pass it along technique.

When one person speaks, they do it slowly, clearly and with a pause every few seconds. That ensures that everyone near the speaker can hear. Then they all repeat back what the speaker just said. This is repeated over and over until everyone hears the message. These guys care about the message. Some protesters camp out for weeks to hear the message. So even though there is rain, the media thinks you’re a joke and the police want to lock you up; they continue to press on.

If you are wondering how long will these protest last? One protester said “Indefinitely until change is made to the financial structure.” Good luck with that. Now don’t fooled. All these people who have occupied Wall Street are not there for financial protest. There are many causes that have gathered to protest. The local Financial District residents voted down a resolution against the protesters at a community board meeting. That is a clear sign that they are getting support.

Even with the support It’s unclear how long the Occupy Wall Street movement will continue. They just have too many hands in the pot to cook a whole meal. No one has come up with what conditions it would take to have the group clear out. Rumor has it that the group is willing stay at Zuccotti park all winter. I would be the first to doubt them but the group has been there since September 17th. The group is gaining momentum outside of New York as well. There are many protests that have been, are being held or are being planned in other cities.

Amazon Prime gets Fox & Netflix gets Dreamworks

Fox shows and movies will be available for unlimited streaming later this fall through Amazon Prime, which costs $79 per year and also includes unlimited two-day shipping on retail items.
Amazon’s Prime instant video now has 11,000 movies and TV shows. They have deals with CBS, NBCUniversal, Sony, Warner Bros and now Fox. “Since launching earlier this year, we have now doubled the number of titles available in Prime instant videos, and there’s still more to come,” Amazon CEO Jeff Bezos wrote on the company’s home page.

Netflix has about 20,000 titles in its catalog. Netflix will feel the loss of Starz content and from changes to its pricing now more than ever. When you have angered customers and they hear about other services adding content at $16.88 cheaper than you; that is a problem.

Amazon Prime may have all the content in the world but as they say its all about Location Location Location. Netflix is on every device out there.

Netflix does understand however that customers are not happy. They know Hulu Plus and Amazon Prime are out there. After Starz leaving they needed someone to fill the void. Netflix has inked a deal with DreamWorks Animation over the weekend. That should fill the void very well, thank you very much.

This is a costly deal to Netflix and might more for PR than anything else. DreamWorks content won’t show up until 2013. This deal is the first time a major Hollywood studio has chosen a video streaming service over pay television. We don’t know how long the deal but understand that Netflix is giving out $30 million per film to DreamWorks. New York Times states that DreamWorks walked away from a deal with HBO and chose to partner with Netflix instead.

Google buys Motorola Mobility for $12.5 Billion: Says to Apple & Microsoft Now what?!

We were wondering if Google would do anything to gear up for a fight that Apple is bent on bringing to the Android. Google tried to buy some patents. Then went tick for tack with Microsoft over not winning any. They looked pretty childish in the press over it as well. It seems that Google had an Ace in it’s sleeves. A 12.5 Billion dollar deal does not just happen over a weekend. This must have been in the works for a while. It should be interesting to see what if anything Apple has to say about this deal. Also as a side bar. Note to RIM; these are the type of deals you should be looking at doing to help your company out.

Google has more than 150 million Android devices have been activated worldwide. There are more than 550,000 devices being turned on every day. They are in over 122 countries. Given Android’s phenomenal success brings a lot of fear from the other market leaders. Namely Apple. Apple has been going after Android tablet and phone makers as of late. With the way Android was build and the open source nature of the OS. It was hard for companies to defend themselves. Apple has a whole lot of money to through into the law system and comes up with a new patent every week.

Google and it’s Android makers were at a major disadvantage. That is why I am so excited today to announce that we have agreed to acquire Motorola. Google paid $12.5 billion to purchase smartphone vendor Motorola Mobility. That is small change to Google. You might be wondering how does this effect Samsung and other companies that use the OS. The acquisition will not change the way Google handles the Android platform. Motorola will remain a licensee of Android. It will still be open for others to use. Although do look out for MotoBlur to be removed in the not to distant future. and Android will remain open.

Google said it will run Motorola as a separate business. Google CEO Larry Page explained the acquisition will help bolster the tech giant’s patent portfolio. That is the main reason that Motorola was brought. To be in a position to better protect Android as a whole. Even though Motorola will test future versions of the OS before others. Samsung, Sony Ericsson, HTC, and LG have all issued statements in support of the acquisition. They realized that it is good for business as a whole. They had the following to say:

• J.K. Shin, president of Samsung’s Mobile Communications said “We welcome today’s news, which demonstrates Google’s deep commitment to defending Android, its partners, and the ecosystem”

• Sony Ericsson president and CEO Bert Nordberg said “I welcome Google’s commitment to defending Android and its partners”

• LG’s president and CEO Jong-Seok Park said “We welcome Google’s commitment to defending Android and its partners”

• HTC’s CEO Peter Chou said “We welcome the news of today’s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem”

Google CEO Larry Page wrote the following:

“The U.S. Department of Justice had to intervene in the results of one recent patent auction to ‘protect competition and innovation in the open source software community’ and it is currently looking into the results of the Nortel auction. Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.”

The Press Release: Google to Acquire Motorola Mobility

Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences

MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill.–(BUSINESS WIRE)–Google Inc. (NASDAQ: GOOG) and Motorola Mobility Holdings, Inc. (NYSE: MMI) today announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011. The transaction was unanimously approved by the boards of directors of both companies.

“Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.”

The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.

Larry Page, CEO of Google, said, “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.”

Sanjay Jha, CEO of Motorola Mobility, said, “This transaction offers significant value for Motorola Mobility’s stockholders and provides compelling new opportunities for our employees, customers, and partners around the world. We have shared a productive partnership with Google to advance the Android platform, and now through this combination we will be able to do even more to innovate and deliver outstanding mobility solutions across our mobile devices and home businesses.”

Andy Rubin, Senior Vice President of Mobile at Google, said, “We expect that this combination will enable us to break new ground for the Android ecosystem. However, our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community. We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices.”

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US, the European Union and other jurisdictions, and the approval of Motorola Mobility’s stockholders. The transaction is expected to close by the end of 2011 or early 2012.