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The Huffington Post  |  By Posted:  |  Updated: 04/23/12 05:51 PM ET

Risks To Facebook: The 13 Factors That Could Hurt Facebook, According To Its Amended S-1 Filing

Facebook is nearing its IPO date, and as it gets closer, it has been furiously updating its S-1 filing.

The social network released an amendment to the S-1 on Monday afternoon, and with it came an updated list of risk factors, the bumps in the road that could totally undo its business, and the reasons one might not invest in what could be the largest initial public offering in Internet history.

Below, we've updated our list of the biggest risks facing Facebook as it prepares for its rumored May 17 IPO. Scan through the biggest risks -- from the Yahoo patent lawsuit, to a blocked-off China, to Mark Zuckerberg himself -- and decide for yourself: What is Facebook's largest obstacle to long-term success?

Mark Zuckerberg Controlling Too Much
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Perhaps the most eye-popping risk listed in the S-1 is the idea that Mark Zuckerberg's bad decision-making could lead to a decline in company value. Along with "users fleeing" and "decline in advertising revenue," the following was listed as a major risk factor:

Our CEO has control over key decision making as a result of his control of a majority of our voting stock.


Zuckerberg owns 58 percent of Facebook stock, which means that he "has the ability to control the outcome of matters" that come before stockholders. Furthermore:

As a stockholder, even a controlling stockholder, Mr. Zuckerberg is entitled to vote his shares, and shares over which he has voting control as a result of voting agreements, in his own interests, which may not always be in the interests of our stockholders generally.


Should stockholders fear the man who controls the company they hold stock in?
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Facebook is nearing its IPO date, and as it gets closer, it has been furiously updating its S-1 filing. The social network released an amendment to the S-1 on Monday afternoon, and with it came an...
Facebook is nearing its IPO date, and as it gets closer, it has been furiously updating its S-1 filing. The social network released an amendment to the S-1 on Monday afternoon, and with it came an...
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Ash G
35 Fans
01:31 AM on 04/24/2012
Just curious, what will the IPO let them achieve that they do not have money for? They just bought some company for 1 billion bucks. Don't they have another few billion to do the same?

Looks like they are just under pressure from early investors who want to finally cash out. After that, whatever.
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hanspij
82 Fans
 
09:48 PM on 04/23/2012
To all FB junkies. There is a life after FB. I have stopped using FB some years back.The reason?Easy, they spy to much and make money with me and my data and they abuse it. So i stopped using and deleted my account.
That was years back and iam stil happy and kicking. Try it. Live is just going on :)
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NoelleAllen
13 Fans
 
10:40 AM on 04/24/2012
and what you dont think that leaving a reply in a forum like this doesnt allow a server to collect any info from you?
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hanspij
82 Fans
 
01:47 AM on 04/25/2012
A lot.
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waitformedear
36 Fans
06:34 PM on 04/23/2012
Didn't M.Z. give us Face Book at the outset. Seems like he's done a superlative job. Why fear him at the helm in the future.
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