Reporters' Roundtable: What's Facebook going to do with that money?

Facebook plans to raise $5 billion in an IPO. What will Facebook do with the money? This week on the Roundtable, Rafe discusses Facebook's future with Josh Constine from TechCrunch and Shervin Pishevar from Menlo Ventures.

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Facebook filed to go public this week and the entire tech world turned its attention to the filing document, the S-1. It revealed some impressive numbers: 845 million monthly users on Facebook, about half of them on mobile devices.

It also showed that Zynga accounted for 12 percent of Facebook's revenue.

CEO Mark Zuckerberg, in a letter embedded in the S-1, also took pains to tell potential investors that Facebook would try to maintain its "hacker culture," as well as its focus on connecting people to each other, as opposed to connecting shareholders just to revenue.

There's a lot to unpack in the Facebook filing, and we have two great guests to help us walk through it:

  • Josh Constine, a writer at TechCrunch and fomerly the lead writer of Inside Facebook, and...
  • Shervin Pishevar, a venture capitalist in Menlo Ventures and an entrepreneur

Bonus: Shervin was an early investor in Klout, so I asked him some questions on that product, after the main show. The video is embedded at the end of this post.

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Discussion points:

Was the IPO filing what we expected? Why is Facebook going public?

Will there be a brain drain?

(5:30) The Facebook culture: What is it? Is it for real? Can it be maintained?

(9:10) Inside the S-1 registration statement. What's Facebook going to do with the money?

(13:00) Revenues per user are low. Should, or can, Facebook raise them?

(14:00) How advertising changes because of Facebook

(18:00) Facebook vs. Google

(19:00) Mobile: How does Facebook play here?

(24:00) Where Facebook's downfall could come from

(25:00) Zynga

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(28:00) Developer relationships and Spotify

(31:30) Google and Google+, again, and "the identity layer."

(34:30) Vs. the mobile operating system companies

(36:00) Twitter

Bonus: After Shervin, Josh, and I finished talking about Facebook, I left the recorder on so we could talk briefly about the social-influence-measuring company Klout, which Shervin invested in. See the extra video right here.