Facebook almost cancelled its $16 billion (£12.3 billion) IPO in 2012 because its internal revenue projections were so bad, according to court testimony in a class-action lawsuit. The episode dates from April 2012, when Facebook was struggling to make the switch from desktop into mobile. Clubok said Facebook’s revenues had begun to rebound by the time of the float.
Mark Zuckerberg wrote the following text to his then-fiancee and now wife Priscilla Chan saying: “Everything here is going really badly. Our revenue projection has gone down so much we now think we might go public at less than $50bn if things continue.”
The Financial Times first reported on the court hearing, which took place in Manhattan on Wednesday.
The episode dates from April 2012, when Facebook was struggling to make the switch from desktop into mobile. The company went public in May.
The court heard that Zuckerberg went into a “huddle” with some of Facebook’s top executives in a hotel room in New York. He met with then CFO David Ebersman and COO Sheryl Sandberg to discuss whether to float.