Facebook, the Controlled Company, Takes Advertising Mobile

Yesterday I ran a comparison of the amended Facebook registration statement, filed March 7, against the initial S-1 filed February 1, 2012.

You can access that redline here.

Looking at phone

Two things pop out:

  • Facebook is a "controlled company," it discloses flatly. "Therefore, we are not required to have a majority of our board of directors be independent, nor are we required to have a compensation committee or an independent nominating function."
  • Facebook is taking its advertising products to its mobile versions.

Here's a wholly new paragraph from the amended S-1, about advertising:

"Value of Advertising Products. We believe that increasing the value of our advertising products and the consequent return on investment to advertisers from working with Facebook will increase advertiser demand and thereby increase the amount advertisers spend with us. We aim to increase the value of our advertising products through such means as increasing the size and engagement of our user base, improving our ability to select relevant content of interest to individual users, developing new formats and products such as ads with social context, and improving the measurement tools available to advertisers to optimize their campaigns. For example, in 2011, we launched sponsored stories as a new format to leverage social context, and in February 2012, we announced that sponsored stories will be shown in users' mobile News Feeds."

Emphasis added.

If you're not familiar with legal redlining conventions, here's what you need to know: red indicates text that has been deleted; blue indicates new text that has been added; and green indicates text that was in the prior draft, but has moved to a new location within the draft.

Photo by Morten Rand-Hendriksen/Flickr.


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