Tags: mark zuckerberg | facebook IPO

Zuckerberg Nearly Canceled Facebook IPO: 'Everything Here Is Going Really Badly'

Image: Zuckerberg Nearly Canceled Facebook IPO: 'Everything Here Is Going Really Badly'
(Drew Angerer/Getty Images)

By    |   Thursday, 10 Aug 2017 11:13 AM

Facebook's chief executives considered canceling its initial public offering in 2012 amid questions about its revenue, Financial Times reports.

Multiple investors, including the Arkansas Teacher Retirement System, are suing Facebook and its directors over alleged violations of securities laws and misleading investors over the effect switching to a mobile platform would have on revenues.

"Everything here is going really badly," Mark Zuckerberg, Facebook CEO, wrote to his then-fiancée in April of that year, according to court testimony given on Wednesday. "Our revenue projection has gone down so much we now think we might go public at less than $50bn if things continue."

Facebook's internal annual revenue projections went from $6.6 billion in December to $5.2 billion by that spring due to the difficulty in adapting to users using the mobile version of the site. Although the shares performed poorly in the first few months, Facebook eventually improved with the help of mobile advertising, which accounts for 87 percent of its revenues.

"We remain confident that our disclosures were complete, accurate, and complied with applicable law," a Facebook spokesperson told Financial Times after the hearing.

On Thursday, Facebook launched its new streaming video service, called Watch.

"We believe it's possible to rethink a lot of experiences through the lens of building community — including watching video," Zuckerberg wrote in a Facebook post. "Watching a show doesn't have to be passive. It can be a chance to share an experience and bring people together who care about the same things."

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Facebook's chief executives considered canceling its initial public offering in 2012 amid questions about its revenue, Financial Times reports.
mark zuckerberg, facebook IPO
247
2017-13-10
Thursday, 10 Aug 2017 11:13 AM
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