THE FACEBOOKK IPO EDUCATORS GUIDE

THE FACEBOOK IPO EDUCATORS GUIDE

In February 2012, Facebook filed for an Initial Public Offering (IPO), which will allow the public to buy stocks in the company. The venture is estimated to generate upwards of $100 billion for Facebook and create thousands of young millionaires who work for it. It could also bring billions in tax revenue to the state. All this from a free website that profits from our personal data. .

EDUCATION SUBJECTS

Government

American History

English Language and Arts

Economics

Information Technology Industry Sector

CONTENT STANDARDS

Common Core State Standards: (CCS): ELA Reading Informational Text, 9-10; 1-2.

1. Cite strong and thorough textual evidence to support analysis of what the text says explicitly, as well as inferences drawn from the text.

2. Determine the central idea of a text and analyze its development over the course of the text, including how it emerges and is shaped and refined by specific details; provide an objective summary of the text.

CCS: Reading Standards for Literacy in History/Social Studies. Key Ideas and Details, 9-10.

3. Analyze in detail a series of events described in a text; determine whether earlier events caused later ones or simply preceded them.

CCS: Reading Standards for Literacy in History/Social Studies. Craft and Structure, 11-12.

5. Analyze in detail how a complex primary source is structured, including how key sentences, paragraphs, and larger portions of the text contribute to the whole.

History Social Science Content Standards, 10. 10.3.5

Understand the connections among natural resources, entrepreneurship, labor, and capital in an industrial economy.

Historical and Social Science Analysis Skills, 9-12.

Historical Interpretation 1. Students show the connections, causal and otherwise, between particular historical events and larger social, economic, and political trends and developments. 2. Students recognize the complexity of historical causes and effects, including the limitations on determining cause and effect.

Technical Education Model Curriculum Standards, Information Technology Industry Sector. 9-12

4.1. Understand past, present, and future technological advances as they relate to a chosen pathway.

4.3 Understand the influence of current and emerging technology on selected segments of the economy.

KQED, NPR, AND PBS RESOURCES FOR TEACHING THIS TOPIC

MULTIMEDIA

Visit the News Education blog for explanations and background context on the Facebook IPO and how it social media websites like Facebook use personal data to create value.

LISTEN

-One hour discussion from KQEDs Forum with technology insiders about the potential impact of the Facebook IPO. (2/2/12; Duration: 1 hour)

-One hour episode from WNYCs One the Media that examines The Facebook Effect, and ranges from considering Facebook as its own country, to the value of a Like. (2/3/12; Duration: 1 hour)

WATCH

-Explaining the value behind Facebooks IPO on PBSs NewsHour. (2/1/12; Duration: 7:59)

GLOSSARY

IPO Initial Public Offering, which is when a company first files to accept investment from the public.

Private Company a company whose investors are a select group, usually the owners of the business or a core group of investors. Private companies do not have to disclose very much information about their company, and profits of the company are only shared by the investors.

Public Company a company whose investments are open to the public. Anyone who is interested in purchasing partial ownership, aka stock, in order to make money when the company does. Public companies need to regularly report their earnings to investors.- Stock Market

- Social media

TOPIC BACKGROUND

(Come up with at least 8 bullet that summarize the storys remember to include info about how that money trickles down to Facebook employees, how it could help California, what we pay to be on Facebook, etc.)-On February 1, 2012, Facebook announced that it was seeking its IPO in order to become a public company.

-The announced IPO led to massive speculation about the value of Facebook, which analysts generally agree to be about $75-$100 billion.

-At the same time, analysts were keen to point out where exactly Facebook gets its massive value, which is from the personal data willingly generated by users of the social media. The more users share data with Facebook, the more Facebook can share that data with advertisers who seek to created targeted ads.INTRODUCTORY QUESTIONS

-Why do you use Facebook?

-Facebook is the most popular social network in the world. Why do you think it is more popular than other social networks, like myspace, twitter, or pinterest?- Overall, are Facebook and other social media sites good for the world? Why/why not?-Do you ever see posts from friends on Facebook that are too personal? Or have you ever posted something personal that backfired? How did you handle those situations? What are -What are some pros/cons about getting personally catered advertisements, if anything?FOCUS QUESTIONS (USE FROM BLOG)(try to come up with about 4 more questions that force students to dig into the content you created) -Why would a private company want to go public?

-What are the downsides to going public?

-How does your awareness that Facebook actually makes its money off of your data impact your feelings towards Facebook, if at all?

-Is it possible that with Facebook valued at almost $100 billion, we might be headed towards another dot-com bubble burst, with tech companies drastically over-valued?