EDM : Diplo ranked as Fast Company’s 28th most creative person in business

Fast Company have released their rankings of the 100 most creative people in business for 2013, a list of “the 2013 global leaders in technology, design, media, music, movies, marketing, television, sports, and more.” Sitting at number 28 on the list is Thomas Pentz, the DJ, producer, and Mad Decent founder known as Diplo. Highlighted for his creativity in heading his own independent record label, Diplo is acknowledged for the global success of Baauer’s “Harlem Shake” and the antics that made it possible.

Credit : Dancing Astronaut

Five Ways Small Businesses Can Make the Most of Facebook

Small business owners are usually stretched pretty thin in terms of time and budget. Most businesses want to thrive on Facebook but can't devote the kind of time they'd really want to make an impact. Try spending about 10 minutes a day on your Facebook page for regular upkeep. It's always a good rule of thumb to expect the initial setup of your page to be 80 percent of your Facebook time commitment and then the other 20 percent for consistent updates and maintenance 10 minutes a day.
Why devote 10 minutes a day to Facebook? There are many reasons why, but most importantly Facebook can help strengthen your relationships with your customers. The smaller your business, the more important these connections can be to help keep your company thriving. Highlighting the human factor of your company is what creates strong relationships between customers and your business. Facebook helps facilitate these emotional connections on a larger scale before or after an in store visit, phone call or other customer interaction.

Here are five ways to make the most of your time on Facebook:
1. Use Photos to Share Your Products and Services: Photos are the most effective means of driving engagement on Facebook, according to a study by Buddy Media, because people are innately visual and Facebook caters to this fact. The more quality interactions customers have with your photos on Facebook, the more word of mouth marketing works to spread the news of your business to your customers and their Facebook friends. People are innately intrigued by what they can't typical see, so give them a behind the scenes look at what's happening at your business. Share photos of your processes, like making a coffee if you own a cafe or repairing a sweater if you're a seamstress. Also, showcase your employees (preferably smiling) to further bring attention to the human aspect of your business. Often businesses are discouraged because they don't have an expensive SLR camera, but all it takes today for a stunning photo is shooting with the camera on your smartphone. Snap away and begin posting to see what is and isn't resonating with your audience.
2. Facebook Offers: Advertise your online or instore sales using Facebook's new ad unit called Offers. This ad allows a business owner to highlight their existing promotions within the Facebook's ecosystem to a larger audience than they would be able to regularly reach when posting. This is a paid ad, but the first ad is free for small businesses. After your first ad has run, the price is dependant on how many people you wish your offer to reach. These ads are relatively inexpensive and can cost as little as $10 to reach 5,000 to 9,000 relevant people. Think of this feature as pay to play reach for your business.
Facebook suggests the following quick tips for making the most of Offers:
● Give high quality and exclusive offers.
● Re-share offer post every three days; do not post a new one.
● Pin the offers post to top of your page.
● Offer text should be short with a clear call to action; leave out marketing jargon.
● Images should be colorful and simple.

3. Install Free Apps on Your Page: Every Facebook page has a banner displaying four tabs at the top right, below your cover photo. One of these tabs, which can't be changed, is the photos tab that highlights all the photos shared on your Facebook page up to this point. What you can change and customize for your business are the other three tabs to the right of the photo tab which allow you to highlight applications of your choice, free or paid. It's not required, but it's certainly recommended that you add apps to these tabs to provide a more engagingexperience. Whether you wish to showcase your upcoming events, Instagram photos, tweets, email sign up form or whatever else, there's plenty of free applications like these in this sentence to choose from. Start by searching the Facebook App Center for apps you'd like to addto your page and if you come up short, use a search engine to find a Facebook app (since Facebook search can be unreliable at times). For example, search: facebook email app in Google, Bing or Yahoo.
4. Schedule Posts from Facebook: Your time is valuable; maybe you don't have 10 minutes a day to spare for Facebook everyday. Facebook allows page owners to schedule posts to be published at a later date. Set aside time to schedule posts at the beginning or end of the week to make sure you're giving your business proper coverage on Facebook, while saving yourself time. This feature allows admins to schedule links, photos, status update and videos ahead of time. At this time, you can't schedule photo albums, events, questions, offers or milestones. Begin by choosing what type of content you wish to add to your Page, write text for it and the choose the small clock icon in the lower-left of the sharing tool. Choose the future year, month, day, hour and minute you'd like your post to go live and then click schedule to finalize your posting.



You can delete scheduled posts from your activity log but you can't edit them, so make sure you're satisfied with your scheduled posts before finalizing. This is a perfect tool to get ahead on your Facebook posts. Be sure to return to your page each day, to respond to any feedback on your Facebook page.
5. Interact with Customers Right from Your Smartphone: When a person posts on your wall or on a post shared on your Page, its extremely important to respond with insightful information in a timely manner when appropriate. Answering questions, responding to compliments, dealing with complaints and removing spam is one of the most important ways to give your audience the best experience possible on Facebook. Your community is made up of your current and potential customers, supporting them in any way you can will help strengthen their relationship with your business. Satisfaction helps breed loyalty. If your customers feel both loyal to your business, its more likely you'll have a strong, long-term connection with them.







The best way to manage feedback on Facebook page with limited time is by using the Page Manager app. Download this app on your iPhone to answer private messages, wall posts, comments on your posts or to deal with any other community management tasks. The app allows you to update your Page and check Page insights as well but the best way to utilize this app is for viewing your notifications in real time to ensure you're handling your customer's needs as they arise.

 

Credit : Huffington Post

This 21-Year-Old Just Sold Her Startup For $100 Million

Catherine Cook

In 2005, Catherine Cook and her brother David had an idea for a startup. The high schoolers flipped through a yearbook and wanted to make a digital version. The 15-and-16-year-olds got to work and created MyYearbook. In the 6-year span, the duo raised $17 million in financing, grew the site to 20 million users*, and generated 1.2 billion monthly pageviews.
Today, a publicly-traded Latino social network, Quepasa, announced its $100 million acquisition of MyYearbook. The majority of the deal, $82 million, is Quepasa common stock. The other $18 million is cash.
Geoff Cook, MyYearbook's CEO and sibling of Catherine and David, wrote a letter to his 100+ employees:
"I don’t consider this an exit or the end. I consider it the end of the beginning, and I believe we have a lot more innovative products to create," he says.
Welcome to retirement Catherine, Geoff and David! Although we're sure this won't be the last company they create.
The Cooks aren't the only entrepreneurial kids who have made tons of money. This guy made $2.5 million by age 21 then blew it all on girls and gambling.

Here's an infographic MyYearbook and Quepasa put together about their acquisition. More than its audience, Quepasa seems to be enthralled with the $33.6 million business MyYearbook has created and its profitability.

Cell Phones : Verizon is on a roll, posts another $27.5 billion in Q2 revenues

Hot on the heels of AT&T's happy earnings tidbits yesterday, VZW's latest figures also show that it's raking the money in nice and regular. Total operating revenues in Q2 were $27.5 billion -- that's up half a billion on Q1 2011 and 6.3 percent on Q2 2010 (on a non-GAAP basis). The Big Red claims 2.2 million net additions to its wireless customer base, contributing to a 6.6 percent year-on-year increase in wireless service revenues and a 22.2 percent increase in wireless data revenues. The wireline side of the business also performed well, with 189,000 FiOS Internet additions and 184,000 FiOS TV additions adding up to a 9.4 percent year-on-year increase. Chairman and CEO Ivan Seidenberg summed it up as "one of Verizon's best quarters since the 2008 economic downturn.

 

Press Release

Verizon Reports Accelerated Revenue Growth, Expanded Margins and Strong 2Q Earnings Performance

2Q HIGHLIGHTS

Consolidated

• 57 cents in diluted earnings per share (EPS), compared with a loss of 42 cents per share and adjusted EPS (non-GAAP) of 51 cents in 2Q 2010.

Wireless

• 6.6 percent year-over-year increase in service revenues in 2Q 2011; data revenues up 22.2 percent; 27.1 percent operating income margin and 45.4 percent Segment EBITDA margin on service revenues (non-GAAP).

• 2.2 million net additions, excluding acquisitions and adjustments, includes 1.3 million retail postpaid net customer additions; 106.3 million total connections, includes 89.7 million retail customers.

• Retail postpaid churn of 0.89 percent, the lowest in three years.

Wireline

• 189,000 FiOS Internet and 184,000 FiOS TV net additions.

• 9.4 percent year-over-year increase in consumer ARPU; FiOS consumer retail revenues represent approximately 57 percent of total consumer revenues.

• 17.8 percent increase in strategic services revenues, representing approximately 48 percent of total global enterprise revenues.

Verizon Communications Inc. (NYSE, NASDAQ: VZ) today reported accelerated revenue growth and improved margins across its business groups, leading to a strong earnings performance in second-quarter 2011.

Verizon reported 57 cents in EPS in the quarter, compared with a second-quarter 2010 loss of 42 cents per share.

There are no adjustments to second-quarter 2011 earnings results. Adjusted second-quarter 2010 earnings were 51 cents per share, excluding the impact of divestitures and non-operational charges (non-GAAP). The most significant 2010 charges related to a workforce-reduction incentive offer that led to approximately 11,900 voluntary separations last year.

Strong, Positive Momentum

"In terms of earnings growth and the acceleration of revenue growth, this has been one of Verizon's best quarters since the 2008 economic downturn," said Chairman and CEO Ivan Seidenberg. "We expanded sequential margins in both our wireline and wireless businesses, and in the second half of the year we expect Verizon to build on this strong, positive momentum to continue to drive profitable, sustainable growth."

Seidenberg added: "We expect Verizon Wireless to gain share in the retail postpaid market and widen its network-quality lead throughout 2011. We also continue to see strong customer demand for FiOS Internet and TV, and for cloud and other strategic services. At the same time, we remain focused on our cost structure, as we deliver improvements in wireline margins quarter after quarter."

Consolidated Revenue Growth Accelerates

On a consolidated basis, Verizon's total operating revenues were $27.5 billion in second-quarter 2011, an increase of 2.8 percent compared with second-quarter 2010. Last year's results included revenues from operations that have since been divested.

On a comparable basis (non-GAAP), second-quarter 2011 total operating revenues increased 6.3 percent compared with second-quarter 2010. This was Verizon's strongest quarter for consolidated revenue growth in 10 quarters.

Also on a comparable basis, consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) for second-quarter 2011 totaled $9.0 billion, up 5.2 percent year over year.
Cash flow from operating activities totaled $12.8 billion in the first half of 2011, down from $16.8 billion in the first half of 2010. Last year's total included cash flow from businesses that have since been divested and the timing of favorable tax-related impacts, and 2011 totals include inventory purchases for wireless devices and the impact of previously announced pension-fund payments in first-quarter 2011. Verizon said its cash flow outlook for the remainder of 2011 remains very strong.

The company aggressively invested in growth opportunities in the first half of 2011. One example is the deployment of Verizon's nationwide 4G LTE (fourth-generation, Long-Term Evolution) wireless broadband network. In first-half 2011, Verizon's capital expenditures totaled $8.9 billion, compared with $7.6 billion in first-half 2010.

Verizon continues to expect full-year 2011 capital spending to be similar to its 2010 investment of $16.5 billion.

Verizon Wireless Deliver Another Strong Quarter

Verizon Wireless delivered strong growth in revenues, retail customers and other connections, driven by increased smartphone penetration and increased retail postpaid ARPU (average monthly service revenue per user). In the second quarter of 2011:
Wireless Financial Highlights

• Service revenues in the quarter totaled $14.7 billion, up 6.6 percent year over year. Data revenues were $5.8 billion, up $1.1 billion or 22.2 percent year over year, and represent 39.5 percent of all service revenues. Total revenues were $17.3 billion, up 10.2 percent year over year.

• Retail postpaid ARPU grew 1.9 percent or $1.00 over second-quarter 2010, to $54.12. Retail postpaid data ARPU increased to $21.26, up 15.2 percent year over year. Retail service ARPU also grew 1.9 percent, to $52.49.

• Wireless operating income margin was 27.1 percent. Segment EBITDA margin on service revenues (non-GAAP) was 45.4 percent.

Wireless Operational Highlights

• Verizon Wireless added 2.2 million total connections, including 1.3 million retail postpaid customers, and 890,000 wholesale and other connections. These additions exclude acquisitions and adjustments.

• At the end of the second quarter, the company had 106.3 million total connections, an increase of 6.6 percent year over year, including 89.7 million retail customers and 16.6 million wholesale and other connections.

• At the end of the second quarter, smartphones were 36 percent of Verizon Wireless' retail postpaid customer phone base, up from 32 percent at the end of first-quarter 2011.

• Retail postpaid churn was 0.89 percent, the lowest in the industry and the company's lowest since second-quarter 2008. Total retail churn was 1.22 percent, an improvement of 9 basis points year over year and 11 basis points sequentially.

• Verizon Wireless continued to roll out its 4G LTE mobile broadband network during the quarter. As of yesterday (July 21), Verizon Wireless 4G LTE service is available in 102 markets across the country, covering a population of more than 160 million. By year-end, Verizon Wireless' 4G LTE network, the fastest and most advanced LTE network in the U.S., is expected to be available in more than 175 markets across the country, covering a population of more than 185 million.

• The company introduced three new 4G LTE devices: the Droid Charge by Samsung, Revolution by LG and the MiFi 4510L 4G LTE Mobile Hotspot by Novatel Wireless. The company also announced that the 4G LTE-enabled Samsung Galaxy Tab 10.1 is available for pre-order; the device is expected to launch by the end of this month. During the second-quarter 2011, Verizon Wireless sold 1.2 million 4G LTE smartphones and Internet data devices.

• Verizon Wireless continued to invest in and enhance its 3G network, the nation's largest and most reliable 3G network.

• During the quarter, Verizon Wireless deployed crisis response teams to help customers stay connected in areas devastated by disasters including the North Dakota floods, Arizona wildfires and Joplin, Mo., tornado.
Improved Revenue Trends in Wireline
Verizon's Wireline segment continued to expand margins, supported by improved revenue trends. In the second quarter of 2011:

Wireline Financial Highlights

• Segment EBITDA margin (non-GAAP) was 23.8 percent, compared with 22.4 percent in second-quarter 2010. This was Wireline's fifth consecutive quarter of sequential EBITDA margin expansion.

• Second-quarter 2011 operating revenues were $10.2 billion, a decline of 0.3 percent compared with second-quarter 2010. This is an improvement from a decline of 2.2 percent comparing first-quarter 2011 to first-quarter 2010. Verizon acquired cloud and managed IT infrastructure leader Terremark Worldwide in April, and the inclusion of Terremark results added $98 million in revenue, representing 100 basis points of wireline revenue growth, in second-quarter 2011.

• Revenues for Verizon's FiOS fiber-optic services to consumer retail customers generated approximately 57 percent of consumer wireline revenues in second-quarter 2011, compared with approximately 48 percent in second-quarter 2010.

• Consumer revenues grew 1.3 percent compared with second-quarter 2010. Consumer ARPU for wireline services was $92.44 in second-quarter 2011, up 9.4 percent compared with second-quarter 2010. ARPU for FiOS customers continues to be more than $146.

• Global enterprise revenues totaled $4.0 billion in the quarter, up 3.6 percent compared with second-quarter 2010. Sales of strategic services -- including Terremark cloud services, security and IT solutions, and strategic networking -- increased 17.8 percent compared with second-quarter 2010 and now represent approximately 48 percent of global enterprise revenues.

Wireline Operational Highlights

• Verizon added 189,000 net new FiOS Internet connections and 184,000 net new FiOS TV connections in second-quarter 2011. Verizon had a total of 4.5 million FiOS Internet and 3.8 million FiOS TV connections at the end of the quarter.

• FiOS penetration (subscribers as a percentage of potential subscribers) is now 30 percent or more for both services. FiOS Internet penetration was 34 percent at the end of second- quarter 2011, compared with 30 percent at the end of second-quarter 2010. In the same periods, FiOS TV penetration was 30 percent, compared with 26 percent, respectively. The FiOS network passed 16.1 million premises at mid-year 2011.

• Broadband connections totaled 8.6 million at the end of second-quarter 2011, a 3.3 percent year-over-year increase. FiOS Internet connections more than offset a decrease in DSL-based HSI connections, resulting in a net increase of 62,000 broadband connections from first-quarter 2011. Total voice connections, which measures FiOS Digital Voice connections in addition to traditional switched access lines, declined 7.9 percent to 25.0 million -- the smallest year-over-year decline since second-quarter 2007.

• During the quarter Verizon continued to execute its global cloud strategy, rolling out an expanded portfolio of secure IT solutions and an operational model for its Terremark subsidiary. Verizon also continued to deploy integrated IT and communications solutions for multinational enterprise, medium-sized and government customers. These solutions included expansion of the company's managed mobility services for tablets, mobile access to cloud-based SAP applications and enhanced security management programs for health care providers. Verizon also completed new agreements with a range of multinational corporations, including Constellation Energy, Epsilon, Masco Corp. and PHH Corp.

• Verizon expanded its global network infrastructure during the quarter as it continued to broaden its scope and capabilities. The company installed 63 additional Private IP edge routers for a total of 915 edge routers in 245 sites throughout 63 countries, activated more than 1,500 kilometers (932 miles) of ultra-long-haul network across the southern part of the United Kingdom, and completed a joint fiber build in Singapore, which almost doubles the coverage of the Singapore fiber-optic network. Verizon continued to demonstrate leadership in scaling the global IP network and kicked off the expansion of 100G IP backbone capabilities in the U.S. to nine routes.

NOTE: Reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results for the divestiture of overlapping wireless properties in 105 operating markets in 24 states during the first half of 2010; the wireless deferred revenue adjustment that was disclosed in Verizon's Form 10-Q for the period ended June 30, 2010; and the spinoff to Frontier of local exchange and related landline assets in 14 states, effective on July 1, 2010. See the accompanying schedules and www.verizon.com/investor for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this document.

NOTE: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of adverse conditions in the U.S. and international economies; the effects of competition in our markets; materially adverse changes in labor matters, including labor negotiations, and any resulting financial and/or operational impact; the effect of material changes in available technology; any disruption of our key suppliers' provisioning of products or services; significant increases in benefit plan costs or lower investment returns on plan assets; the impact of natural disasters, terrorist attacks, breaches of network or information technology security or existing or future litigation and any resulting financial impact not covered by insurance; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing; any changes in the regulatory environments in which we operate, including any increase in restrictions on our ability to operate our networks; the timing, scope and financial impact of our deployment of broadband technology; changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; our ability to complete acquisitions and dispositions; and the inability to implement our business strategies.

Tech : Microsoft's acquisition of Skype for $8.5 billion becomes official

It was pretty much known about since last night, but Microsoft and Skype have now obliterated any lingering doubt in the matter: the Redmond-based software giant will acquire the internet telephony company for a cool $8.5 billion in cash. Xbox and Kinect support are explicitly mentioned in the announcement of this definitive agreement, as is Windows Phone integration -- both the gaming and mobile aspects being presumably key incentives for Microsoft to acquire Skype. Importantly, this purchase shouldn't affect Skypers outside of the Microsoft ecosystem, as Steve Ballmer's team promises to continue "to invest in and support Skype clients on non-Microsoft platforms." Skype was first sold for a relative bargain at $2.5b to eBay in 2005, who in turn sold most of it off to Silver Lake in 2009 at an overall valuation of $2.75b, and now Redmond is concluding proceedings by tripling those earlier prices and offering Skype a permanent home. A new Microsoft Skype Division will now be opened up to accommodate the newcomers, with current Skype CEO Tony Bates becoming president of that operation and reporting directly to Ballmer. The deal is expected to close by the end of this year and you can read Microskype's full announcement after the break.

Microsoft to Acquire Skype

Combined companies will benefit consumers, businesses and increase market opportunity.

REDMOND, Wash., and LUXEMBOURG – May 10, 2011 – Microsoft Corp. (Nasdaq: "MSFT") and Skype Global S.à r.l today announced that they have entered into a definitive agreement under which Microsoft will acquire Skype, the leading Internet communications company, for $8.5 billion in cash from the investor group led by Silver Lake. The agreement has been approved by the boards of directors of both Microsoft and Skype.

The acquisition will increase the accessibility of real-time video and voice communications, bringing benefits to both consumers and enterprise users and generating significant new business and revenue opportunities. The combination will extend Skype's world-class brand and the reach of its networked platform, while enhancing Microsoft's existing portfolio of real-time communications products and services.

With 170 million connected users and over 207 billion minutes of voice and video conversations in 2010, Skype has been a pioneer in creating rich, meaningful connections among friends, families and business colleagues globally. Microsoft has a long-standing focus and investment in real-time communications across its various platforms, including Lync (which saw 30 percent revenue growth in Q3), Outlook, Messenger, Hotmail and Xbox LIVE.

Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities. Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms.

"Skype is a phenomenal service that is loved by millions of people around the world," said Microsoft CEO Steve Ballmer. "Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world."

Skype will become a new business division within Microsoft, and Skype CEO Tony Bates will assume the title of president of the Microsoft Skype Division, reporting directly to Ballmer.

"Microsoft and Skype share the vision of bringing software innovation and products to our customers," said Tony Bates. "Together, we will be able to accelerate Skype's plans to extend our global community and introduce new ways for everyone to communicate and collaborate," Bates said.

"Tony Bates has a great track record as a leader and will strengthen the Microsoft management team. I'm looking forward to Skype's talented global workforce bringing its insights, ideas and experience to Microsoft," Ballmer said.

Speaking on behalf of the investor group that sold Skype to Microsoft, Egon Durban, managing director of Silver Lake, said: "We are thrilled with Skype's transformation during the period of our ownership and grateful for the extraordinary commitment of its management team and employees. We are excited about Skype's long-term future with Microsoft, as it is poised to become one of the world's most dynamic and comprehensive communications platforms."

Founded in 2003, Skype was acquired by eBay in September 2005, and then acquired by an investment group led by Silver Lake in November 2009. Skype has made impressive progress over the past 18 months under Silver Lake's leadership, increasing monthly calling minutes by 150 percent, developing new revenue streams and strategic partnerships, acquiring the intellectual property powering its peer-to-peer network, and recruiting an outstanding senior management team.

Other members of the selling investor group led by Silver Lake include eBay International AG, CPP Investment Board, Joltid Limited in partnership with Europlay Capital Advisors; and Andreessen Horowitz.

The acquisition is subject to regulatory approvals and other customary closing conditions. The parties hope to obtain all required regulatory clearances during the course of this calendar year.

About Skype
Skype is communications software whose purpose is to break down barriers to communication. With an Internet-connected device, families, friends and colleagues can get together for free with messaging, voice and video. At low cost, they can also call landlines or mobiles virtually anywhere in the world. Skype has recently introduced group video, allowing groups of more than two people to do things together whenever they're apart.

Founded in 2003 and based in Luxembourg. Skype can be downloaded onto computers, mobile phones and other connected devices for free.

Tech : Apple brand valued at $153 billion, scoots ahead of Google for first place

What is the world's most valuable consumer-facing brand? If you'd asked the guys behind the BrandZ survey at any point over the last four years, they'd have told you "Google," but in 2011 their answer has changed. Apple is now the hottest property in terms of consumer goodwill, earning an estimated valuation of $153.3 billion and leading a pack that includes the likes of Coca-Cola, BMW, HSBC, and Disney. The tech sector had a very strong year as a whole, with Facebook's brand improving in value by a staggering 246 percent (to $19.1b) and Amazon becoming the world's most valuable retailer (at $37.6b) in spite of having no actual stores. Sadly, there were some downers too, as Nintendo lost 37 percent of its brand worth over the past year, Nokia dropped by 28 percent, and the BlackBerry marque was considered 20 percent less awesome than before.

Cell Phones : Verizon reports 'strong' Q1 earnings: $27 billion revenue, 2.2 million iPhone activations

Yesterday was AT&T's turn, and today it's Verizon revealing its earnings for the first quarter of 2011. The company has reported $27 billion in consolidated revenue from its wireless and wireline businesses, which is up 5.3 percent year over year (on a non-GAAP basis), while profits rose to $1.4 billion. Fueling that growth was 1.8 million net additions to its wireless customer base, which now totals 88.4 million customers (and 104 million connections). It also saw 207,000 net additions to its FiOS internet business and 192,000 net additions to FiOS TV, which bring those total customer bases to 4.3 million and 3.7 million, respectively. As for that little iPhone 4 launch, Verizon says it's resulted in 2.2 million activations -- that's quite a bit less that AT&T's 3.6 million iPhone activations for the same quarter, as you've no doubt noticed, although it does also have the benefit of a much cheaper iPhone 3GS in addition to the iPhone 4. Verizon also said that demand was "strong" for its new LTE devices (including 260,000 HTC Thunderbolt activations), and that deployment of its LTE network remains on track, with it expected to be available in more than 175 markets by the end of the year -- in fact, that's actually up a bit from the 147 figure we last heard. Head on past the break for the company's full earnings report. 

 

First-Quarter Performance Affirms 2011 Revenue and Earnings Guidance

1Q HIGHLIGHTS
Consolidated

51 cents in diluted earnings per share (EPS), compared with EPS of 16 cents and adjusted EPS (non-GAAP) of 48 cents in 1Q 2010.
Wireless

6.3 percent year-over-year increase in service revenues in 1Q 2011; data revenues up 22.3 percent; 25.8 percent operating income margin and 43.7 percent Segment EBITDA margin on service revenues (non-GAAP).
1.8 million net additions, excluding acquisitions and adjustments, includes 906,000 retail postpaid net customer additions; continued low retail postpaid churn of 1.01 percent.
104.0 million total connections, includes 88.4 million retail customers.
Wireline

207,000 net FiOS Internet and 192,000 net FiOS TV additions; 4.3 million total FiOS Internet connections and 3.7 million total FiOS TV connections.
10.5 percent year-over-year increase in consumer ARPU; FiOS consumer retail revenues now represent approximately 54 percent of total consumer revenues.
12.8 percent increase in strategic enterprise revenues, which now represent approximately 46 percent of total global enterprise revenues.
Verizon Communications Inc. (NYSE, NASDAQ: VZ) today reported strong first-quarter 2011 earnings, as industry leader Verizon Wireless continued to effectively balance customer growth and profitability, while growth in FiOS and strategic enterprise services contributed to another quarter of improvement in wireline margins.

Verizon reported 51 cents in EPS in first-quarter 2011, compared with first-quarter 2010 earnings of 16 cents per share. There are no adjustments to first-quarter 2011 earnings results. Adjusted first-quarter 2010 earnings, excluding the impact of divestitures and non-operational charges (non-GAAP), were 48 cents per share.

On Track to Meet Revenue and Earnings Objectives

"In the first quarter, Verizon Wireless solidified its industry leadership with results that once again showed sustainable, profitable growth," said Verizon Chairman and CEO Ivan Seidenberg. "We are executing on our business plans and building momentum, and we are on track to meet both our revenue and earnings objectives for the year."

Seidenberg added, "Wireline EBITDA margins expanded for the fourth consecutive quarter, driven by continued strength in FiOS revenues and disciplined cost management. Our strategic acquisition of Terremark, which closed earlier this month, improves our ability to provide integrated, enterprise-class cloud solutions and accelerate growth."

Consolidated Revenue Growth Accelerates

On a consolidated basis, Verizon's total operating revenues were $27.0 billion in first-quarter 2011, an increase of 0.3 percent compared with first-quarter 2010. Last year's results included revenues from operations that have since been divested.

On a comparable basis (non-GAAP), first-quarter 2011 total operating revenues increased 5.3 percent compared with first-quarter 2010 -- up from growth of 2.3 percent on the same basis comparing fourth-quarter 2010 with fourth-quarter 2009. Approximately 77 percent of first-quarter 2011 revenues were generated by higher-growth wireless, FiOS and strategic enterprise services, compared with approximately 72 percent of comparable first-quarter 2010 revenues.

As previously stated, Verizon is targeting comparable top-line revenue growth rates in the range of 4 percent to 8 percent for full-year 2011. The company is also targeting EPS growth of 5 percent to 8 percent in 2011, over a comparable adjusted base of $2.08 per share in 2010.

Verizon continues to expect 2011 capital spending to be essentially flat, compared with the 2010 investment of $16.5 billion. In first-quarter 2011, Verizon's capital expenditures totaled $4.4 billion, compared with $3.4 billion in first-quarter 2010, as the company aggressively invested in growth opportunities, including the deployment of Verizon's nationwide 4G LTE (fourth-generation, Long-Term Evolution) wireless broadband network. With 4G LTE deployment well under way, Verizon's capitalized interest will be lower in 2011, resulting in higher interest expense of about $150 million for each quarter this year.

Cash flow from operations totaled $5.0 billion in first-quarter 2011, down from $7.1 billion in first-quarter 2010. Operating cash flow from higher net income in first-quarter 2011 was offset by the launch of the iPhone and satisfaction of Verizon's full-year 2011 pension funding obligation of $392 million. In addition, the first half of last year included cash flows from since-divested properties.

Verizon said its cash flow outlook for 2011 remains strong, and there is no change regarding the anticipated 2012 timing of a Verizon Wireless dividend to its parent companies.

The effective income tax rate attributable to Verizon for the first quarter was 30 percent. For full-year 2011, Verizon anticipates an effective tax rate to be in a range consistent with the past three quarters, post the Frontier and Alltel divestitures.

Verizon Wireless Delivers Strong Operational and Financial Results

Verizon Wireless delivered strong growth in revenues, retail customers and other connections; increased retail postpaid ARPU (average monthly service revenue per user) and smartphone penetration; and delivered a strong EBITDA margin. In the first quarter of 2011:

Wireless Financial Highlights

Service revenues in the quarter totaled $14.3 billion, up 6.3 percent year over year. Data revenues were $5.5 billion, up $1.0 billion or 22.3 percent year over year, and represent 38.1 percent of all service revenues. Total revenues were $16.9 billion, up 10.2 percent year over year.
Retail postpaid ARPU grew 2.2 percent over first-quarter 2010, to $53.52. Retail postpaid data ARPU increased to $20.51, up 17.3 percent year over year. Retail service ARPU also grew 2.2 percent, to $51.88.
Wireless operating income margin was 25.8 percent. Segment EBITDA margin on service revenues (non-GAAP) was 43.7 percent.
Wireless Operational Highlights

Verizon Wireless added 1.8 million total connections, including 906,000 retail postpaid customers, and 897,000 wholesale and other connections. These additions exclude acquisitions and adjustments.
At the end of the first quarter, the company had 104.0 million total connections, an increase of 6.1 percent year over year, including 88.4 million retail customers and 15.6 million wholesale and other connections.
At the end of the first quarter, 32 percent of Verizon Wireless' retail postpaid customer phone base were smartphones, up from 28 percent at the end of fourth-quarter 2010.
Retail postpaid churn remained low at 1.01 percent, and total retail churn was 1.33 percent. Both improved year over year.
Following the launch of its 4G LTE mobile broadband network in 38 markets in December 2010, the company so far has named more than 100 additional markets where 4G LTE is being rolled out. By year-end, Verizon Wireless' 4G LTE network, the fastest and most advanced 4G LTE network in the U.S., is expected to be available in more than 175 markets, covering a population of more than 185 million people throughout the country.
The company introduced three 4G LTE devices: the ThunderBolt by HTC, the first 4G LTE smartphone; the Verizon USB551L, a modem made by Novatel Wireless; and a Samsung 4G LTE Mobile Hotspot.
Demand was strong for new LTE devices -- as well as for Apple's iPhone 4, which produced the most successful first-day sales in Verizon Wireless history when it was introduced in February to existing customers.
Verizon Wireless continued to invest in its 3G network, the nation's largest and most reliable 3G network.
The company announced plans to open the Verizon Wireless Application Innovation Center in San Francisco later this year, where developers, engineers and others can work together on innovative applications that will run on the company's 3G and 4G networks.
Continued Wireline Margin Expansion and FiOS Growth

Verizon's Wireline segment delivered continued margin expansion and growth in FiOS customers and revenues, as well as accelerated growth in revenues for strategic enterprise services. In the first quarter of 2011:

Wireline Financial Highlights

Segment EBITDA margin (non-GAAP) was 23.6 percent, compared with 21.1 percent in first-quarter 2010. This was Wireline's fourth consecutive quarter of sequential margin expansion.
First-quarter 2011 operating revenues were $10.1 billion, a decline of 2.2 percent compared with first-quarter 2010. This is an improvement from a decline of 2.8 percent comparing fourth-quarter 2010 to fourth-quarter 2009. First-quarter 2011 total operating expenses were $9.9 billion, a decline of 3.9 percent compared with first-quarter 2010.
Revenues for Verizon's FiOS fiber-optic services to consumer retail customers generated approximately 54 percent of consumer wireline revenues in first-quarter 2011, compared with approximately 45 percent in first-quarter 2010.
Consumer revenues grew 1.9 percent compared with first-quarter 2010. Consumer ARPU for wireline services was $90.55 in first-quarter 2011, up 10.5 percent compared with first-quarter 2010. ARPU for FiOS customers continues to be more than $146.
Global enterprise revenues totaled $3.8 billion in the quarter, up 1.0 percent compared with first-quarter 2010. Sales of strategic enterprise services -- such as security and IT solutions, as well as strategic networking -- increased 12.8 percent compared with first-quarter 2010, and accelerated from a growth rate of 8.0 percent comparing fourth-quarter 2010 with fourth-quarter 2009. Strategic services now represent approximately 46 percent of global enterprise revenues.
Wireline Operational Highlights

Verizon added 207,000 net new FiOS Internet connections and 192,000 net new FiOS TV connections in first-quarter 2011. Verizon had 4.3 million FiOS Internet and 3.7 million FiOS TV connections at the end of the quarter.
FiOS Internet penetration (subscribers as a percentage of potential subscribers) was 33.1 percent by the end of the first quarter, with the product available for sale to 13.0 million premises. This compares with 29.0 percent and 12.0 million, respectively, at the end of first-quarter 2010. FiOS TV penetration was 29.1 percent by the end of first-quarter 2011, with the product available for sale to 12.6 million premises. This compares with 25.4 percent and 11.5 million, respectively, at the end of first-quarter 2010.
Broadband connections totaled 8.5 million at the end of first-quarter 2011, a 3.0 percent year-over-year increase. FiOS Internet connections more than offset a decrease in DSL-based HSI connections, leading to a net increase of 98,000 broadband connections from fourth-quarter 2010. These are the most broadband net additions since second-quarter 2009. Total voice connections, which measures FiOS Digital Voice connections in addition to traditional switched access lines, declined 8.2 percent to 25.5 million -- the smallest year-over-year decline since first-quarter 2008.
During the quarter, Verizon moved decisively to accelerate its "everything-as-a-service" enterprise cloud strategy by announcing its acquisition of cloud and managed IT infrastructure leader Terremark Worldwide, which closed in April.
Verizon continued to deploy secure IT and communications solutions that enable better business outcomes for multinational enterprise, medium-sized and government customers. These included a new cloud-based unified communications service, an enhanced set of Enterprise Identity Management offerings, and delivery of SAP's Customer Relationship Management service through Verizon's flagship cloud offering, Computing as a Service. In addition, Verizon completed new agreements during the quarter with a range of multinational corporations, including Delphi Automotive.
Verizon expanded its global network infrastructure, continuing to broaden its global scope and capabilities. The company installed 38 additional Private IP edge routers for a total of 852 edge routers in 238 sites throughout 63 countries; activated the first 100GE (gigabit Ethernet) transmission trunk between routers on Verizon's backbone network; implemented Internet Protocol Version 6 (IPv6) on its public IP backbone in Europe and the Asia-Pacific regions; and activated 7,021 miles of the Europe India Gateway submarine cable system, which connects the United Kingdom, the Middle East, Africa and Asia.
The Wireline workforce totaled 92,000 at the end of first-quarter 2011, a year-over-year decline of 16,000 (adjusted for divested operations), primarily as a result of incentive offers that led to voluntary separations.
NOTE: Reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results for the divestiture of overlapping wireless properties in 105 operating markets in 24 states during the first half of 2010; the wireless deferred revenue adjustment that was disclosed in Verizon's Form 10-Q for the period ended June 30, 2010; and the spinoff to Frontier of local exchange and related landline assets in 14 states, effective on July 1, 2010. See the accompanying schedules and www.verizon.com/investor for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this document.

NOTE: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of adverse conditions in the U.S. and international economies; the effects of competition in our markets; materially adverse changes in labor matters, including labor negotiations, and any resulting financial and/or operational impact; the effect of material changes in available technology; any disruption of our key suppliers' provisioning of products or services; significant increases in benefit plan costs or lower investment returns on plan assets; the impact of natural disasters, terrorist attacks, breaches of network or information technology security or existing or future litigation and any resulting financial impact not covered by insurance; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing; any changes in the regulatory environments in which we operate, including any increase in restrictions on our ability to operate our networks; the timing, scope and financial impact of our deployment of broadband technology; changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; our ability to complete acquisitions and dispositions; and the inability to implement our business strategies.

 

Business : Facebook Deal Spurs Inquiry SEC Launches Review of 1960s-Era Disclosure Regulations for Private Firms

The Securities and Exchange Commission has begun examining whether disclosure rules for privately held firms need to be rewritten as a result of recent deals allowing investors to buy shares in Internet companies such as Facebook Inc. and Twitter Inc., according to people familiar with the situation.

The review is at an early stage, these people cautioned, and SEC officials looking at the recent deals haven't concluded that any of them run afoul of the 47-year-old rules governing private companies. The rules require firms with 500 or more shareholders of record in a given type of stock to publicly disclose certain financial information. The requirement is designed to protect investors from risking money on companies that say little about their operations and performance.

Still, Facebook's agreement with Goldman Sachs Group Inc. to create an investment vehicle that will allow some of the securities firm's richest clients to buy as much as $1.5 billion of equity in Facebook is causing the SEC to re-examine a key dividing line between public and private companies.

Facebook's Friends

How Goldman Sachs is helping investors squeeze into privately held Facebook.

While SEC officials could decide the rules need to be updated in order to provide adequate protection for investors, the agency is trying to balance that with the demands of private companies that want to raise capital. As part of the investigation, SEC officials plan to scrutinize special-purpose vehicles like the one being created by Goldman and Facebook to determine if they are being designed primarily to circumvent the so-called 500-shareholder rule, according to people familiar with the matter. Both companies declined to comment.

Facebook had fewer than 500 investors as of the end of last year, said a person familiar with the Palo Alto, Calif., company, including current and former employees, venture-capital firms and private investors. In 2008, Facebook told the SEC that the company had fewer than 499 holders in each of five classes of stock.

In addition, Facebook is getting a $500 million infusion from Goldman and Russian investment company Digital Sky Technologies. That would give DST slightly less than a 10% stake in Facebook, people familiar with the situation said. Goldman would own a roughly 0.8% stake, and if the special-purpose goes through, its clients would own a combined 3% of the social-networking firm. Facebook President and CEO Mark Zuckerberg owns about 25%.

The 500-shareholder rule, issued in 1964, has been a headache for private companies that wanted outside investors and venture capital, but didn't want to disclose any financial information. Google Inc.'s decision to go public in 2004 was triggered partly because the Internet-search giant exceeded the 500-shareholder limit.

Facebook already has taken steps to avoid breaching the current rules. Employees aren't allowed to sell any of their shares in the company, and employees hired since 2007 are granted restricted stock units that have no value unless Facebook goes public or is acquired. A Facebook spokesman has said the moves were designed "to better comply with insider trading laws and to protect the interests of the company and its employees and shareholders." Facebook got an exemption from the SEC in 2008 that excludes the restricted stock units from counting toward the 500-shareholder limit.

"The bigger issue is these hybrid companies … are betwixt and between: not quite private and not quite public," says Keith Bishop, a partner at law firm Allen Matkins and a former California commissioner of corporations. "They have these shares being traded but not the same disclosure requirements as a public company."

Executives at Wall Street firms are wondering if the SEC will "open the floodgates" to allow clones of the Facebook deal, according to one official at a large U.S. bank.

Special-purpose vehicles usually are formed to move assets off a company's balance sheet to help avoid some regulatory scrutiny and capital requirements. The vehicles must be created for a specific and limited purpose, according to lawyers.

SEC officials plan to scrutinize special-purpose vehicles like the one being created by Goldman and Facebook to determine if they are being designed primarily to circumvent the so-called 500-shareholder rule. Here, the headquarters of Facebook in Palo Alto, Calif.

The investment vehicle being created by Goldman is intended solely to pool investors' money to create the legal effect of a single new shareholder in Facebook, since each special-purpose vehicle counts as one shareholder of record. While such an arrangement is similar to a big venture-capital firm or hedge fund with many investors pumping money into a company at a pre-public stage, it has the potential to include many more investors in the pool.

Clients approached by Goldman about investing in Facebook must decide by the end of this week if they are interested, according to people familiar with the matter. "It's hard to imagine how this thing is going to make money," said one Goldman client who has been approached by the firm. Still, the deal is "an attractive opportunity," the client said.

It isn't clear how many Goldman clients will be allowed to invest, but it could be in the hundreds. Potential investors have been told that the minimum commitment in the $1.5 billion investment vehicle is $2 million. If the SEC determines that the vehicle was designed to evade the 500-shareholder rule, then the agency could force Facebook to count all the beneficial shareholders in the vehicle toward the company's total.

In a post on Facebook, Salesforce.com Inc. Chief Executive Marc Benioff, who took the San Francisco-based Internet software company public in 2004, wrote: "There are now thousands of investors in Facebook and more coming with these new investment vehicles. It's already a public company. It's just unregulated." A Salesforce spokeswoman said Mr. Benioff wasn't immediately available for comment.

Goldman is following in the footsteps of several small brokerage firms that have popped up in recent years to take advantage of rabid investor interest in private Internet companies.

Such brokerage firms allow employees and former employees of well-developed private companies to sell their shares even though the shares aren't publicly traded. The secondary markets help companies "retain their talent and grow so that when they finally join the public market, they'll be incredibly financially strong," says Frank Mazzola, an executive at Felix Investments LLC, a New York company that pairs buyers and sellers of shares in Facebook and other closely held companies. The SEC's "scrutiny is a good thing."

Rides : Hyundai Sales End Year Up A Staggering 24% - December Sales Soar 33%

For the full year, Hyundai reported 538,228 sales, up 103,164 units from last year for a 24 percent gain and an all-time Hyundai sales and market share record for the year.

December retail sales were up 54 percent from last year due to improving product availability and a popular Hyundai Holiday marketing effort that helped increase traffic to Hyundai.com 120 percent over last year. Full year retail sales were up 35 percent. Fleet sales mix for the month of December was 7 percent, with fleet mix for the year at 16 percent.

"December was the capstone to a good year for Hyundai, with our total sales results actually understating the more important gains we made at retail, where we added a full point of market share," said John Krafcik, president and CEO, Hyundai Motor America. "While we grew total volume 24 percent, retail volume through our 800-strong dealer network climbed 35 percent, or 115,786 units, with 90,349 of that retail gain coming from the game-changing 2011 Sonata."

"That marks the biggest retail sales increase of any car in the entire industry, and it shows how well consumers have responded to our high-tech 4-cylinder lineup, dynamic new design, and the mid-size segment's first 5-star 2011 NHTSA crash test result," Krafcik added. "Improving Sonata Turbo availability, and the lithium-polymer battery-powered Sonata Hybrid that arrives later this month, should help Sonata find a few more buyers in 2011."

Elantra, Sonata

, and Tucson sales for December increased 127 percent, 52 percent, and 348 percent, respectively. The all-new 2011 Elantra, which achieves 40 miles per gallon in every variant, not just low-volume, extra-charge "Eco" or "Special Fuel Economy" models, found 4,724 homes in its first full month of availability. Hyundai has targeted leadership in sales of 40 mile-per-gallon vehicles in 2011, and closes the books in 2010 with 4,916 sales in this category.

Genesis continued its impressive growth with the 18th consecutive month of year-over-year sales increases. For the year, Genesis sales increased 33 percent, to 29,122. "The continued growth in Genesis sales shows how much the Hyundai brand has grown over the last two years," said John Krafcik. "Genesis market share has now exceeded our most optimistic early projections, and has set the stage well for continued growth in premium segments." Hyundai's all-new flagship Equus, with higher residual value than Mercedes-Benz S-Class, BMW 7-Series, and Audi A8, began hitting showrooms in December to high demand and limited availability, resulting in 196 sales. Hyundai targets Equus sales volume of 2,000 to 3,000 in 2011.

Rides - Porsche VW merger on track after U.S. suit dropped

FRANKFURT | Mon Jan 3, 2011 8:18am EST

FRANKFURT (Reuters) - Shares in German automaker Porsche SE (PSHG_p.DE) soared on Monday after a U.S. judge dismissed a hedge fund lawsuit seeking more than $2 billion in damages, removing a key obstacle to a merger with Volkswagen (VOWG_p.DE).

At 0819 GMT shares in the Stuttgart-based automaker were 12 percent higher, while Volkswagen gained 3.2 percent.

"We regard this as ... positive news for Porsche SE shareholders as the biggest risk to the merger with VW has been removed," Credit Suisse analysts said.

The lawsuit had delayed attempts by Volkswagen to fold Porsche into its operations next year and the ruling opens the door for a planned rights issue by Porsche.

"(This ruling) clearly paves the way for the planned rights issue at Porsche SE to raise 5 billion euros ($6.7 billion) in the first half of 2011," DZ Bank analyst Michael Punzet said.

Late last week, U.S. District Judge Harold Baer said hedge funds led by Elliott Associates and Black Diamond Offshore Ltd, could not maintain securities fraud claims based on Porsche's tactics when it tried to take over VW in 2008.

The hedge funds alleged they were victimized when Porsche covertly bought a stake of Volkswagen ordinary shares using swap instruments as part of a so-called "sneak attack" method plan to take over Europe's largest auto maker.

Spain's ACS (ACS.MC) used similar tactics to amass a stake of almost 30 percent in Germany's Hochtief (HOTG.DE), while auto supplier Schaeffler SCHA.UL bought up a stake in Continental (CONG.DE) using swap agreements that skirted disclosure rules.

When Porsche revealed its holding in October 2008, shares of VW soared, briefly making the company the world's biggest by market value and causing losses for hedge funds which had bet on a share price decline.

Baer dismissed most of the plaintiffs' claims with prejudice, meaning they cannot be brought again. The ruling came after the closing of the market on Thursday. On Friday the German stock market was closed for New Year.

Volkswagen said on Sunday it had extended the contract of Chief Executive Martin Winterkorn until 2016.

Goldman Invests in Facebook at $50 Billion Valuation

The deal could double the personal fortune of Mark Zuckerberg, Facebook’s co-founder.

Facebook, the popular social networking site, has raised $500 million from Goldman Sachs and a Russian investor in a deal that values the company at $50 billion, according to people involved in the transaction.

The deal makes Facebook now worth more than companies like eBay, Yahoo and Time Warner.

The stake by Goldman Sachs, considered one of Wall Street’s savviest investors, signals the increasing might of Facebook, which has already been bearing down on giants like Google.

The new money will give Facebook more firepower to steal away valuable employees, develop new products and possibly pursue acquisitions — all without being a publicly traded company. The investment may also allow earlier shareholders, including Facebook employees, to cash out at least some of their stakes.

The new investment comes as the Securities and Exchange Commission has begun an inquiry into the increasingly hot private market for shares in Internet companies, including Facebook, Twitter, the gaming site Zynga and LinkedIn, an online professional networking site. Some experts suggest the inquiry is focused on whether certain companies are improperly using the private market to get around public disclosure requirements.

The deal could add pressure on Facebook to go public even as its executives have resisted. The popularity of shares of Microsoft and Google in the private market ultimately pressured them to pursue initial public offerings.

So far, Facebook’s chief executive, Mark Zuckerberg, has brushed aside the possibility of an initial public offering or a sale of the company. At an industry conference in November, he said on the topic, “Don’t hold your breath.” However, people involved in the fund-raising effort suggest that Facebook’s board has indicated an intention to consider a public offering in 2012.

There has been an explosion in user interest in social media sites. The social buying site Groupon, which recently rejected a $6 billion takeover bid from Google, is in the process of raising as much as $950 million from major institutional investors, at a valuation near $5 billion, according to people briefed on the matter who were not authorized to speak publicly.

“When you think back to the early days of Google, they were kind of ignored by Wall Street investors, until it was time to go public,” said Chris Sacca, an angel investor in Silicon Valley who is a former Google employee and an investor in Twitter. “This time, the Street is smartening up. They realize there are true growth businesses out here. Facebook has become a real business, and investors are coming out here and saying, ‘We want a piece of it.’ ”

The Facebook investment deal is likely to stir up a debate about what the company would be worth in the public market. Though it does not disclose its financial performance, analysts estimate the company is profitable and could bring in as much as $2 billion in revenue annually.

Under the terms of the deal, Goldman has invested $450 million, and Digital Sky Technologies, a Russian investment firm that has already sunk about half a billion dollars into Facebook, invested $50 million, people involved in the talks said.

Goldman has the right to sell part of its stake, up to $75 million, to the Russian firm, these people said. For Digital Sky Technologies, the deal means its original investment in Facebook, at a valuation of $10 billion, has gone up fivefold.

Representatives for Facebook, Goldman and Digital Sky Technologies all declined to comment.

Goldman’s involvement means it may be in a strong position to take Facebook public when it decides to do so in what is likely to be a lucrative and prominent deal.

As part of the deal, Goldman is expected to raise as much as $1.5 billion from investors for Facebook at the $50 billion valuation, people involved in the discussions said, speaking on the condition of anonymity because the transaction was not supposed to be made public until the fund-raising had been completed.

In a rare move, Goldman is planning to create a “special purpose vehicle” to allow its high-net-worth clients to invest in Facebook, these people said. While the S.E.C. requires companies with more than 499 investors to disclose their financial results to the public, Goldman’s proposed special purpose vehicle may be able get around such a rule because it would be managed by Goldman and considered just one investor, even though it could conceivably be pooling investments from thousands of clients.

It is unclear whether the S.E.C. will look favorably upon the arrangement.

Already, a thriving secondary market exists for shares of Facebook and other private Internet companies. In November, $40 million worth of Facebook shares changed hands in an auction on a private exchange called SecondMarket. According to SharesPost, Facebook’s value has roughly tripled over the last year, to $42.4 billion. Some investors appear to have bought Facebook shares at a price that implies a valuation of $56 billion. But the credibility of one of Wall Street’s largest names, Goldman, may help justify the company’s worth.

Facebook also surpassed Google as the most visited Web site in 2010, according to the Internet tracking firm Experian Hitwise.

Facebook received 8.9 percent of all Web visits in the United States between January and November 2010. Google’s main site was second with 7.2 percent, followed by Yahoo Mail service, Yahoo’s Web portal and YouTube, part of Google.

For Mr. Zuckerberg, the deal may double his personal fortune, which Forbes estimated at $6.9 billion when Facebook was valued at $23 billion. That would put him in a league with the founders of Google, Larry Page and Sergey Brin, who are reportedly worth $15 billion apiece.

Even as Goldman takes a stake in Facebook, its employees may struggle to view what they invested in. Like those at most major Wall Street firms, Goldman’s computers automatically block access to social networking sites, including Facebook.

Rides : Ford Concedes Camaro Will Outsell Mustang In 2010

George Pipas, Ford's sales analyst, told a group of reporters this week the automaker isn't concerned that the Chevrolet Camaro will outsell the Mustang this year for the first time since 1985.

Through November, Ford sold 68,264 Mustangs. Chevy had sold 75,685 Camaros. This despite the Mustang coming in both Coupe and Convertible flavors. Dodge's Challenger is farther back in the pack at 33,461 units sold through November.

Pipas told reporters this week that "If that was important, we wouldn't have taken a shift off at Flat Rock," the Michigan factory that builds the Mustang, he said.

What this means is twofold — first, that Ford's more interested in making profits than with pride. At this point, that's a good thing if you ask us — up until the point they begin putting profits above sensibility — like if they go and brand a Ford Focus crossover as a Bronco, for example. GM's been down that road before, let's hope Ford doesn't follow them.

Secondly, it's great because for the first time in 25 years, there's actually competition in the muscle car category — and competition's good for everyone, right?

LVMH Holds More Than 20% of Hermès

PARIS—French wines, spirits and luxury goods group LVMH Moët Hennessy Louis Vuitton SA said Tuesday it has built up its shareholding in French luxury-goods company Hermès International SA to more than 20%.

The company released a statement saying that it "has crossed the threshold of 20% of Hermès International and today holds 21, 338, 675 shares."

The family that controls Hermès was taken by surprise when LVMH in October said it owned 17.1% of the fashion house.

Earlier this month, members of the family said they plan to create a holding company that will harbor more than 50% of Hermès, in an effort to fend off advances by LVMH. The holding company would have the first right to purchase any of the remaining family-owned shares, according to the plans.