Facebook, Inc: The Initial Public Offering


Questions to be discussed in the report:
1. How does Facebook make money? What are the value drivers of its business? What is its
comparative advantage relative to other social networking companies?
2. Why is Facebook going public? What is the planned use of proceeds from the offering?
3. What was going on in the U.S. IPO markets prior to Facebook’s offering? What has been the
performance of recent IPOs?
4. What is the intrinsic value of a Facebook share? How does this valuation compare to the price
talk from the underwriters?
5. As a potential shareholder, what are your concerns about Facebook or its stock offering?
6. What is your recommendation for the CXTechnology Fund?

Sample Answer


Piotr Ilitch Tchaikovsky was a Russian arranger of the Romantic period, conceived on May 7, 1840AM in Votkinsk, Russia. His works incorporate ensembles, concertos, dramas, ballet productions, orchestral compositions, and a choral setting of the Russian Orthodox Divine Liturgy. A portion of these are among the most prominent showy music in the old style collection including the ballet performances Swan Lake, The Sleeping Beauty and The Nutcracker. He was the primary Russian arranger whose music established a long term connection universally, which he supported with appearances as a visitor conductor later in his vocation in Europe and the United States. Tchaikovsky was regarded in 1884 by Emperor Alexander III, and granted a lifetime annuity in the late 1880s.


Tchaikovsky was destined to a genuinely rich working class family. His dad, named Ilya Tchaikovsky was a mining business official in Votkinsk. His father\'s progenitors were from Ukraine and Poland. His mom, named Aleksandra Assier, was of Russian and French family. His dad, Ilya Petrovich (a double cross separated) wedded Alexandra and the two had two children, Pyotr and Modest.

Adolescence and Mother demise

Tchaikovsky began piano investigations at five and before long demonstrated momentous endowments. He additionally learned

to understand French and German by the age of six. After a year, he was composing French refrains. The family procured a tutor, Fanny Dürbach, to oversee the kids, and she regularly alluded to Tchaikovsky as the \"porcelain child.\" Tchaikovsky was ultra delicate to music. He would gripe around evening time that the music in his mind would not allow him to rest.

Since the two guardians had moved on from organizations in Saint Petersburg, they chose to teach Tchaikovsky as they had themselves been taught. The School of Jurisprudence chiefly served the lesser honorability and would plan Tchaikovsky for a profession as a government worker. As the base age for acknowledgment was 12 and Tchaikovsky was just 10 at the time, he was required to go through two years loading up at the Imperial School of Jurisprudence\'s private academy, 1300 km from his family. When those two years had passed, Tchaikovsky moved to the Imperial School of Jurisprudence to start a seven-year course of studies. Tchaikovsky\'s partition from his mom to go to life experience school caused an enthusiastic injury that tormented him for an incredible duration.

On June 25, 1854, when he was 14 Tchaikovsky endured the stun of his mother\'s passing from cholera. His splitting from his mom was difficult – an occasion that may have invigorated him to make. Tchaikovsky wailed over the loss of his mom for an amazing remainder, and conceded that it had \"a tremendous impact in transit things showed up for me". He was influenced to the point that he was not able advise Fanny Dürbach, until two years sometime later.

Tchaikovsky\'s dad, who likewise got wiped out with cholera right now however made a full recuperation, quickly sent the kid back to St. Petersburg school with the expectation that the class work would consume his psyche.

At 40 years old, roughly 26 years after his mother\'s passing, Tchaikovsky kept in touch with his patroness, Nadezhda von Meck \"Every snapshot of that shocking day is as striking to me just as it were yesterday.\" However, inside a month of his mother\'s demise he was endeavoring his first genuine endeavors at piece, a three step dance in her memory.

Adolescent Years

Youthful Tchaikovsky

To compensate for his feeling of detachment and to make up for the misfortune in his family framed significant kinships with individual understudies, for example, those with Aleksey Apukhtin and Vladimir Gerard, which endured a mind-blowing remainder. He may have additionally been presented to the supposedly across the board gay practices at the school. Regardless of whether these were developmental encounters or practices toward which the writer would have floated typically, biographers concur that he may have found his sexual direction as of now.

On June 10, 1859, at 19 years old, Tchaikovsky moved on from the School of Jurisprudence, at that point, labored for a long time at the Justice Department of Russian Empire. On June 15, he was selected to the Ministry of Justice. A half year later he became junior partner and two months from that point forward, a senior aide, where he stayed for the remainder of his three-year common assistance vocation.

Early grown-up Life and Music Study

Tchaikovsky chose not to surrender his Ministry post until he was very sure that he was bound to be an artist instead of a government worker.

In 1861, Tchaikovsky went to classes in music hypothesis composed by the Russian Musical Society (RMS) and educated by Nikolai Zaremba. After a year he pursued Zaremba to the new Saint Petersburg Conservatory.

In 1863, Tchaikovsky deserted his common help vocation and started examining music full-time at the St. Petersburg ́s Conservatory, He examined amicability with Zaremba, while Anton Rubinstein, executive and author of the Conservatory, showed him instrumentation and organization. He moved on from the Conservatory in December 1865.

Around then he met Franz Liszt, a nineteenth century Hungarian author and Hector Berlioz, a French Romantic arranger who visited Russia with show visits. During that period Tchaikovsky composed his first expressive dance \'The Swan Lake\', drama \'Eugene Onegin\', four Symphonies, and the splendid Piano Concerto No1.

Nikolay Zaremba

In 1866, Tchaikovsky accepting an occupation as an agreement educator for the Moscow Conservatory with Rubenstein\'s proposal. He was teacher of hypothesis and concordance at the Moscow Conservatory until 1878. Little of his music so far had satisfied the moderate melodic foundation or the more patriot gathering, yet his First Symphony had a decent open gathering.

Tchaikovsky's melodic ability dazzled Rubinstein. He and Zaremba later conflicted with the youthful arranger over his First Symphony, composed after his graduation, when he submitted it to them for their examination. The orchestra was given its initially complete presentation in Moscow in February 1868, where it was generally welcomed.

Tchaikovsky's formal, Western-arranged preparing set him apart from the contemporary nationalistic development exemplified by the powerful gathering of youthful Russian writers known as The Five, with whom Tchaikovsky\'s expert relationship was blended.

Grown-up Life

In 1868, he had a short tease with soprano Désirée Artôt , a Belgian soprano who was acclaimed in German and Italian show and sang for the most part in Germany.

In 1868 she visited Russia with a visiting Italian. Désirée Artôt met Tchaikovsky quickly at a private gathering in the spring. He likewise visited her after her advantage execution. They again met by chance at a melodic gathering, where she communicated her unexpected that he had not visited her all the more regularly during the harvest time. He guaranteed he would do as such, yet he didn't mean to stay faithful to his commitment. Anyway Anton Rubinstein convinced him to see her at the show.

She at that point began to send him solicitations consistently, and he got acquainted with visiting all her nighttimes. He later portrayed her to his

Désirée Artôt

sibling Modest as having \"exquisite motion, elegance of development, and aesthetic poise\".

He had set aside his work on his symphonic lyric Fatum so as to give her everything his consideration. It appears to be conceivable that Tchaikovsky was progressively enamored in her as an artist and on-screen character than as a sentimental intrigue, and experienced issues in isolating the craftsman from the individual. Tchaikovsky devoted his Romance in F minor for piano, Op. 5, to her.

Before the year's over, marriage was being considered. It has been said this was Tchaikovsky's first genuine endeavor to vanquish his homosexuality. Her mom, who was going with her, contradicted the marriage and she wedded a Spanish baritone.

In spite of the fact that his own life may have been fruitless, Tchaikovsky was relentlessly finishing a great many sytheses. In 1875, Tchaikovsky\'s reality debut of his third ensemble was given in Boston on October 25, and was led by Hans von Bulow. In spite of there being pockets of restriction towards his music, his works and notoriety started to spread crosswise over Europe.

In 1877, he wedded a delightful young lady named Anotonina Miliukova, yet separated from her 9 weeks after the fact.

Nadeshda von Meck

During that time of his grievous marriage, Tchaikovsky additionally went into another relationship – just as opposed to meeting up close and personal, they imparted through letters. This turned out very well for him given his outrageous modesty, and furthermore to a limited extent, he didn't need to perfect the relationship.

The lady was Nadeshda von Meck, the widow of a railroad tycoon who had started contact with him not well before the marriage with Miliukova. Just as a significant companion and enthusiastic support, she additionally turned into his patroness for the following 13 years, which enabled him to concentrate solely on arrangement.

In spite of the fact that it is hazy why she would not like to meet him, she sent

him cash as she extraordinarily respected his work. Regardless of what it appeared outwardly, Tchaikovsky was sincerely agitated,

sobbing and questioning himself frequently, and took to liquor as a type of help.

Subsequent to getting a charge out of various triumphs and successive ventures, Tchaikovsky cash and letters from Meck stopped. In 1890, she suddenly ended all correspondence and backing, guaranteeing liquidation, however that wasn\'t the case.

It wasn\'t the loss of the cash that had incredibly vexed him. It was the abrupt end of his passionate buddy of 13 years. This was a blow for the as of now genuinely delicate writer. In 1891, he fled to the US in the wake of accepting a solicitation to the opening seven day stretch of New York\'s Music Hall (which was renamed Carnegie Hall a couple of years after the fact). He visited Niagara Falls and led in Philadelphia and Baltimore before coming back to Russia.

Horrible Experience and Crisis

Exchange of Tchaikovsky\'s own life, particularly his sexuality, has maybe been the most broad of any author in the nineteenth century and positively of any Russian arranger

of his