Jackson Free Press

Facebook is going to have to adjust its privacy settings -- because they're finally going public. The Menlo Park, Calif.-based social-media behemoth released its prospectus this afternoon, which contains the first tangible financial data on the company that has long kept how much money it makes under tight wraps. According to the S-1 filing to the U.S. Securities Exchange Commission, Facebook's revenues grew from $153 million in 2007 to $3.7 buh-buh-BILLION in 2011. The company names losing users and advertising revenue as its two biggest risk factors. In 2009, 2010, and 2011, advertising accounted for 98 percent, 95 percent and 85 percent, respectively, of the company's revenue. It could also be affected by ongoing litigation.

Namely, a lawsuit that Paul D. Ceglia filed suit against Facebook and chief executive officer Mark Zuckerberg on or about June 30, 2010, in the Supreme Court of the State of New York for the County of Allegheny "claiming substantial ownership of our company based on a purported contract between Mr. Ceglia and Mr. Zuckerberg allegedly entered into in April 2003." The company's position is that "Ceglia is attempting to perpetrate a fraud on the court and we intend to continue to defend the case vigorously." The SEC's enforcement division has also been conducting an inquiry into secondary transactions involving the sale of private company securities as well as the number of our stockholders of record. Facebook believes it is in compliance with all federal securities laws.

The document does not state how much money the company hopes to raise with the IPO but various media outlets are estimating the company hopes for a valuation of around $100 billion.