Facebook files for historic IPO to raise about $10 billion

In a letter to potential investors, Facebook founder Mark Zuckerberg said that the company thinks a more open and connected world will help create a stronger economy with more authentic businesses that build better products and services

Washington: Facebook, the social networking giant, has filed an initial public offering which could raise as much as $10 billion and could value the company between $75 billion and $100 billion, reports PTI.

However, the company said it plans to raise $5 billion in its stock sale, the largest public offering on the history of a web company.

Also, Facebook for the first time gave potential investors a glimpse into its financial structure.

In its filing before the Security and Exchange Commission (SEC), Facebook said in 2011 it generated revenue of $3.71 billion, which is an increase of 88% from $1.97 billion the year before and 377% from 2009.

In 2011, its income was $1 billion, an increase of 65% from 2010’s $606 billion. Facebook derives 85% of its revenues from advertising, and the rest from social gaming and other fees.

"The company hopes to raise as much as $10 billion when it begins selling shares this spring ...," The Wall Street Journal said in a report.

Founded in 2004 by CEO Mark Zuckerberg, Facebook now has some 845 million active users who in all upload 250 million photos a day.

According to the filing, Zuckerberg made a salary of $483,333 last year, in addition to a $220,500 bonus for the first half of 2011.

"The paperwork portrays a company that makes the vast majority of its money from selling display ads targeted to its users who have revealed to Facebook much about their lives," the Washington Post reported.

Facebook is expected to file its paperwork several times over the next few months, updating the information it provided to the SEC on Wednesday.

Meanwhile in a letter to potential investors, Mr Zuckerberg said Facebook thinks a more open and connected world will help create a stronger economy with more authentic businesses that build better products and services.

"As people share more, they have access to more opinions from the people they trust about the products and services they use. This makes it easier to discover the best products and  improve the quality and efficiency of their lives," he wrote.

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TDSAT adjourns hearing on 3G roaming to 16 February

The Tribunal also asked Airtel, Vodafone, Idea, Aircel and Tata Tele to file their replies over the plea of state-run firm BSNL to implead in 3G roaming controversy along with DoT

New Delhi: The hearing on the 3G roaming controversy before the telecom tribunal Telecom Disputes Settlement and Appellate Tribunal (TDSAT) was on Thursday adjourned even as the Department of Telecom (DoT) contended the delay was leading to the operators taking advantage of the interim order, reports PTI. The TDSAT has now put the matter for next hearing on 16th February.

However, the TDSAT directed the five operators -- Airtel, Vodafone, Idea, Aircel and Tata Tele - to file their replies over the plea of state-run firm BSNL to implead in 3G roaming controversy along with DoT.

The TDSAT bench headed by its Chairman Justice SB Sinha also asked the DoT to file reply over the main petition within three weeks and operators to submit rejoinder over it.

Additional Solicitor General AS Chandiok representing DoT opposed the adjournment and said the interim protection to the operators cannot go on.

He further said TDSAT's interim order of December 24 directing the DoT not to take any coercive action against the operators should be embargoed. He also stressed that the operators should also not add new 3G customers.

However, the TDSAT Chairman said it could not modify its earlier order without hearing the both sides.

On the part of delay, the tribunal said it passed the 24th December order without giving a full hearing to DoT, but in "...meanwhile, you (DoT) filed that we have no jurisdiction. So it is pending".

On 20th January, TDSAT had dismissed DoT plea challenging the former's jurisdiction to decide on 3G roaming dispute and held it has the power to decide on government's direction on 3G roaming agreements among operators.

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Law Ministry to challenge CIC order on disclosure of SG advice

The Ministry said it has decided to file an appeal before the Delhi High Court against the CIC order to disclose the advice of the then SG Goolam Vahanvato to former Telecom Minister A Raja

New Delhi: The Law Ministry has decided to challenge the Central Information Commission (CIC) order directing it to disclose the advice of the then Solicitor General (SG) Goolam E Vahanvati to former Telecom Minister A Raja on spectrum allocation to telecom companies, reports PTI.

The Commission had rejected the argument of the Law Ministry that advice was given in fiduciary capacity and cannot be disclosed under exemption clauses of the RTI Act.

In a recent communication, the Law Ministry has informed RTI applicant Subhash Agrawal that "...it has been decided by the competent authority to file an appeal before the Delhi High Court against the CIC order under reference."

The information sought by activist Agrawal was refused by the Department of Legal Affairs citing exemption clause of "fiduciary relationship" under the Right to Information Act.

Mr Raja had allegedly cited the discussion with Vahanvati to press his point before the Prime Minister to go ahead with spectrum allocation as against the advice of the Prime Minister asking him to wait for some days before taking any action on the issue.

Mr Raja, on 26 December 2007, had written to the Prime Minister saying, "I have already consulted the External Affairs Minister Pranab Mukherjee and Solicitor General of India G E Vahanvati and they have advised me that as a preemptive and proactive measure, I can go ahead with the allocation of 2G spectrum space immediately."

The then Telecom Minister, who has been arrested by the CBI in connection with the 2G spectrum scam, had written the letter in response to Prime Minister's communique to him asking him to wait for some days before taking any action on spectrum allocation.

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