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Facebook IPO Carries Some Surprises

Facebook filed for an IPO this week.

News outlets have been buzzing since Facebook filed its initial public offering Wednesday. While speculations and rumors were flying in the weeks leading up to the move, Payments News notes that the Form S-1 offered a few unexpected revelations too.

 

Facebook's revenue from its payments business rose from a paltry $13 million in 2009 to $557 million in 2011, when the revenue comprised 15 percent of all of Facebook's total for the year. The company also indicated that it will be working to expand the business and has applied for "certain money transmitter licenses and expects to apply for additional money transmitter licenses in the United States," the source reports.

In addition to the transactions that Facebook facilitates between people, its S-1 filing addressed personal relationships too.

"Personal relationships are the fundamental unit of our society," Mark Zuckerberg wrote in the registration statement. "Relationships are how we discover new ideas, understand our world and ultimately derive long-term happiness."

As The Wall Street Journal reports, observers' expectations for revenue growth overshot the company's actual standing. Its overall revenue jumped 88 percent in a year, but fell short of eMarketer's estimate that Facebook's 2011 earnings would hit $4.27 billion, the newspaper notes.

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