Facebook IPO Discloses How It Made $3.71 Billion in The Year 2011

Facebook needs no introduction or any sort of other definitions because in this modern world of social networking almost each and every users uses Facebook for many several purposes for promoting businesses, making money online, play games, socialize with other people all around the globe.

Facebook has filed its IPO (Initial Public Offering) today and disclosed how it made $3.71 Billion in the year 2011. You might be thinking What is IPO? Well IPO stands for Initial Public Offering and it can be defined as first sale of stock by any private company to the public.

Along with this IPO Facebook also revealed how it makes this huge money. It may not be much surprising for you to hear that Facebook says it generates a big amount of money from advertisements and how much money it makes via its partnership with Zynga.

A total of 12 % revenue from Zynga games is generated for Facebook and it is said to be Facebook’s Bottom line. As I mentioned earlier Facebook Made $3.71 Billion in The Year 2011 and $500 million of that came from Zynga. It includes both virtual buying goods and services by users along with the services within the games via Facebook Payments.

Facebook also disclosed that Zynga worth more to Facebook then the figures you just saw due to the facts that the more number of users play games the more number of pages get served and in turn more ads, more money.

While in the filing Facebook also pointed out having a potential risk engaged in having such an interdependent relationship with Zynga if by any means Zynga turn down games on Facebook platform or if Zynga launches games on or move games to other competing platforms other than Facebook. Or if Facebook fall short on maintain a healthy and good relationship with Zynga. We may lose Zynga as a major platform and in turn our financial results may badly affect says Facebook.

3 Comments

  1. Adrienne says:

    I knew they made a killing from their advertisements but I guess because I’m not into any games, I had no idea that was such a big income source for them. I can’t tell you how many friends of mine play games on Facebook all day long though. I just assumed a good bit of those were free but I can see where those really addicted to them would invest in them as well. Heck, I’ve bought a few apps on iTunes for pleasure so I guess this really is the same.

    Interesting post, thanks for opening my eyes.
    Adrienne recently posted..Is Your WordPress Blog Set Up Properly?My Profile

0 Trackbacks

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge