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Articles tagged with: IPO

Facebook Set For $1 Billion In Social Gaming Revenue

Facebook Inc is on course to generate $1 billion in revenue this year from social gaming, according to Kevin Ryan, a leading Internet entrepreneur and former chief executive of online advertising giant DoubleClick.

Most of that revenue will come from advertising.”The $1 billion forecast also includes revenue from Facebook Credits, which allow users to buy items for games and other activities on the social network” , he added.

Pandora’s IPO Raises Again, To $16

After we had just covered Pandora’s IPO raise from $7-$9 a share to $10-$12 a share, the company has just raised the price to $16 per share (nearly double of its original offering). According to Chris Nerney from IT World, this is an old Wall Street trick to raise investor enthusiasm.

Nerney argues that this is a tactic to make Pandora seem like an extremely desirable investment, whether it is or isn’t. This opens Pandora’s box (so to speak) on the first day of trading and will cause investors to pay a high price of about $30 to $40 a share. It is also likely that the stock may dip down to a low $20 in the coming weeks.

Pandora Raises Share Price By $3 In IPO

It looks like Pandora has changed its mind on its shares of stock since it’s original IPO (initial public offering). The company has just issued an amendment raising the share price from $10-$12. This is a $3 per share raise from its original average, and brings the company’s valuation from $1 billion to nearly $2 billion.

Since there are nearly 15 million shares up for the taking, Pandora expects to raise about $203 million from the initiative, or $60 million more than it’s original offering. Pandora currently rocks a user-base of 94 million, compared to 53 million the previous year. Likewise, users spend two times more time on the site than they had the previous year (rising from 0.7 billion hours to 1.6 billion hours).

Pandora Sets IPO Terms, Expect $8 Per Share

The online radio company, Pandora Media Inc. has filed terms for $109.5 million IPO on Thursday. The owners of Pandora will sell 13.68 million shares at $7 to $9 a piece ($8 average), according to an amended filing with S.E.C. (Securities and Exchange Commission).

Pandora was launched in 2005, and was the first online radio service that used a special algorithm based on the Music Genome Project (a database built by teams of music experts that analyzes songs) to select a playlist for users based on preferred and disliked songs.

Groupon Files For $750 Million IPO
According to Business Insider, Groupon has filed an S-1 with the SEC (Securities and Exchange Commission) in efforts to raise $750 million in an Initial Public Offering (IPO), backed by Morgan Stanley. Some of details of the filling
  • Groupon lost $413 million in 2010
  • 2010 revenues totaled $713 million
  • Groupon’s first quarter 2011 revenues reached $645 million
  • Groupon has 83 million email subscribers
  • Groupon sold 30 million coupons last year
  • Groupon spent $86 million on operating costs in 2010
  • Groupon has 7,000+ employees
LinkedIn Files For IPO And Provides Insights

With more than 90 million users, LinkedIn, the social network that helps professionals connect, filed for an initial public offering. The site which is mainly used for business networking, didn’t reveal the number of shares it plans to offer or price range, but offers insights into its current financials and operations.

The fillings highlight how profitable the business of social networking can be. Currently, LinkedIn’s revenues come from three main sources — advertising, hiring solutions and premium subscriptions. According to the filling, it generated revenues of $120 million for 2009 and $161 million for the first 3 quarters of 2010. Its hiring solutions and advertising have become the company’s primary growth areas, comprising of 41% and 32% of revenue, respectively. It indicated it doesn’t expect profitability in 2011 because of investments in technology and a few other areas. It also disclosed that a “substantial majority” of its members don’t visit the site on a regular monthly basis.