Facebook Sets Historic IPO [WSJ, S-1]
Facebook Inc. filed for an initial public offering Wednesday that could value the social network between $75 billion and $100 billion, putting the company on track for one of the biggest U.S. stock-market debuts of all time. The company hopes to raise as much as $10 billion when it begins selling shares this spring, said people familiar with the matter. Potential buyers got their first look at its financials Wednesday, which showed the company produced a $1 billion profit last year from $3.71 billion in revenues. The company derives 85% of those revenues from advertising, with the rest from social gaming and other fees.
For Zuckerberg, Riches up to $28 Billion [WSJ]
Facebook Inc.'s impending initial public offering could yield 27-year-old founder Mark Zuckerberg a fortune valued at $21 billion to $28 billion. According to IPO paperwork Facebook filed Wednesday, Mr. Zuckerberg owns about 28% of the soon-to-be-public company, and is its single largest shareholder. If Facebook raises money at a high-end valuation of $100 billion, Mr. Zuckerberg's stock would be worth $28 billion. On top of his stock, last year Mr. Zuckerberg was paid $1.49 million in salary, bonus and other compensation for his role as chief executive, according to the regulatory filing. Facebook's filing added that Mr. Zuckerberg will sell shares in the IPO, but didn't stipulate how many. It said that he will use the proceeds to pay taxes.
Facebook’s ‘Doogie Howser’ CFO Shepherds Company to Wall Street [CFOJ]
When Facebook was shopping for a CFO in 2009, at the top of its wish list was someone with public company experience. In [David] Ebersman, the former Genentech finance chief, they got that, and more — a level-headed, thoughtful financial executive who is used to sustaining innovation and handling rapid growth. While he didn’t have the profile of a typical Silicon Valley financial executive, he was already well-steeped in the culture of innovation, to which he brought his own brew of personal qualities, including trustworthiness and a steadiness that belie his youth. “He was kind of the Doogie Howser of biotech CFOs,” said Geoffrey Porges, a biotech analyst at Sanford C. Bernstein & Co in New York, who met him while he was Genentech’s CFO. “He’s remarkably accomplished for a still relatively youthful executive.”
When Facebook was shopping for a CFO in 2009, at the top of its wish list was someone with public company experience. In [David] Ebersman, the former Genentech finance chief, they got that, and more — a level-headed, thoughtful financial executive who is used to sustaining innovation and handling rapid growth. While he didn’t have the profile of a typical Silicon Valley financial executive, he was already well-steeped in the culture of innovation, to which he brought his own brew of personal qualities, including trustworthiness and a steadiness that belie his youth. “He was kind of the Doogie Howser of biotech CFOs,” said Geoffrey Porges, a biotech analyst at Sanford C. Bernstein & Co in New York, who met him while he was Genentech’s CFO. “He’s remarkably accomplished for a still relatively youthful executive.”
Accountant worried $2B Texas financier secretly borrowed from investors wouldn’t be paid back [AP]
An accountant who worked for Texas tycoon R. Allen Stanford testified Wednesday that he grew increasingly concerned that the financier wouldn’t be able to return the $2 billion he secretly borrowed from investors to pay for business and personal expenses, including millions to maintain his yachts and private jets. Henry Amadio told jurors at Stanford’s federal fraud trial in Houston that various businesses into which Stanford sunk funds were basically a money pit that ate up investor dollars and didn’t turn a profit. The money Stanford borrowed included $330 million for two airlines and a $20 million prize for a cricket tournament, Amadio said. “As it continued to grow … the concern was: Was it (investors’ money) ever going to be paid back?” he said.
UK watchdog says Deloitte failed at MG Rover [Reuters]
Deloitte and one of its partners failed to properly consider conflicts arising from advising MG Rover Group and its "Phoenix Four" directors who bought the carmaker before it collapsed, Britain's accounting policeman said on Thursday. Deloitte said it disagreed with the complaint which it expected to be dismissed at a public hearing. MG Rover was put into administration in 2005 with debts of 1.4 billion pounds ($2.2 billion) and the loss of 6,000 jobs. Four of its directors had set up Phoenix to buy lossmaking carmaker for a token 10 pounds five years earlier.
KPMG Buys Thomson Reuters Tax Unit [WSJ]
KPMG LLP is buying a tax-compliance business specializing in "indirect taxes" from Thomson Reuters Corp., in a deal that spotlights how taxes and tax collections are becoming as complex and globalized as the economy itself. The Big Four accounting firm is purchasing the U.S. assets of Thomson Reuters's Onesource Indirect Tax managed-services business, in a deal to be announced Thursday. Financial terms weren't immediately disclosed.
Grant Thornton LLP Elects Two New Members to Partnership Board [GT]
Dave Wedding and Jon Wolkenstein are joining the adults table.
The SEC's "90% Convergence" Fantasy [Accounting Onion]
Don't mistake Tom Selling for an "all or nothing" guy. He's a "nothing" guy when it comes to IFRS.
The Jello defense [Tax Update]
Joe Kristan takes a closer look at IRS' approval of the "brain turns to Jello" excuse.
GAAP-ucino Version 1.5 – GMCR [VW]
Extra foam!
Extra foam!