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Facebook's IPO Passes a Hurdle

Facebook's IPO Passes a Hurdle
Photograph by David Paul Morris/Bloomberg

Facebook appears to have avoided a hurdle that has stymied other recent IPOs. The social network updated its registration documents to go public on Tuesday night, offering greater insight into how it determines the location of mobile users and warning that a patent dispute with Yahoo!, which sued Facebook on March 12, could have a material impact on its business. It also has extra detail about the voting agreements that give Mark Zuckerberg control over a majority of voting rights, disclosing which early shareholders have given him the power to decide specific actions, such as issuing stock. The company did not signal plans to end the arrangement.

In a further sign that Facebook is pushing ahead to public trading, Bloomberg News today is reporting that the company has ordered a halt this week of its shares on secondary markets to help the company assess its shareholder base.