Facebook execs tackle mobile concern in IPO video
SAN FRANCISCO (Reuters) - Facebook Inc executives tackled concerns about the company's mobile strategy during a video presentation for its IPO road show.
The company plans to raise $10.6 billion, making it the largest initial public offering ever in Silicon Valley.
On Thursday, Facebook released a 31-minute road show video featuring founder and Chief Executive Mark Zuckerberg, Chief Financial Officer David Ebersman, Chief Operating Officer Sheryl Sandberg and Vice President of Product Chris Cox.
Investors have expressed concerns over how Facebook will increase advertising revenue as more people access the social network through small mobile devices.
During a presentation on advertising, Sandberg said mobile is a key area of growth for Facebook, and that the company would use sponsored stories to generate more advertising income.
Advertisers pay Facebook to highlight certain stories. These sponsored posts recently started running on the News Feeds of Facebook mobile users.
"Today only a small fraction of our ad impressions are sponsored stories, which gives us room to grow," Sandberg said, adding that these paid posts were a "natural part of the Facebook mobile experience."
Facebook Chief Financial Officer David Ebersman said the company would invest heavily in mobile, even if the payoff takes a long time.
The road show, which is intended to persuade investors to buy Facebook shares, starts on Monday.
(Reporting By Alistair Barr)
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