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SEC clears up ‘confusion’ over social media rules

Companies can use social media such as Facebook and Twitter to unveil key information about their operations as long as they’ve told investors where to look for it, the Securities and Exchange Commission announced Tuesday.

 

SEC Pressed Facebook On Zynga, Instagram And Zuckerberg's Control Pre-IPO

Facebook Lawsuits

Facebook went public just about a month ago, and on Friday the Securities & Exchange Commission released its correspondence with the social network in the months between its initial filing and the May 18 IPO.

Senh: Zynga makes up 19% of Facebook's revenue for 2011: “Please disclose that revenue from ads shown to users using Zynga apps on Facebook was approximately 7% of your revenue for 2011,” reads the April 10 letter from SEC Assistant Director Barbara Jacobs to Facebook CFO David Ebersman, “and that this is in addition to the 12% of your 2011 revenue derived from payments processing fees related to Zynga’s sale of virtual goods and direct advertising purchased by Zynga.”

 

Facebook files for IPO

Facebook

Facebook has filed papers for what's expected to be the largest initial public offering ever to come out of Silicon Valley and one of the largest in U.S. history. Ending months of breathless speculation, the 8-year-old social networking company has submitted registration documents with the U.S. Securities and Exchange Commission that set preliminary goal of $5 billion. Facebook had discussed raising as much as $10 billion. Final pricing will not be set for months, and the size of the IPO probably will increase with investor demand. The filing sets the stage for an IPO in May.

 

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