Facebook made $150m but is worth $15b?

Discussion in 'Economics' started by CasperCRF, Apr 11, 2008.

  1. Can some one explain how they come up with Facebook being worth $15 billion when it only made $150 million last year?

    "A Microsoft investment has valued the company at $15 billion. "

    "Even though Facebook is seen as the embodiment of Web 2.0, it has the quintessential Web 1.0 problem: No one has figured out how to make real money off it. Facebook pulled in revenues of just $150 million in 2007. "

  2. Facebook has revenues? From what?
  3. um... facebook isnt worth close to 15bil... MS didn't value facebook at that value, they valued making obstructions for google's continued dominance at that value. There is a very good reason why MS bought a tiny 2.5% share and not a majority share or complete takeover... You will not find another buyer at that price.
  4. amylase


    it's all hyped up

    facebook should not be worth more than a million
  5. sounds like bullshit to me..... unreal that they could value a business that way
  6. advertising and "gifts" LOL

  7. Are you smoking crack?
  8. does any of you have facebook if yes say "yes"

    i'll start i do

    i believe it is valued that much because of its potential for advertisements there is no way they are making that much of gifts...
  9. xxxskier

    xxxskier Guest

    the revenue is from advertising....not gifts.

    btw....a big chunk of that rev came from, non other then mr. softie in a guaranteed ad deal.

    the valuation is simply an extrapolation from msfts' investment stake. they gave about 240M to facebook and in return got a 1.5%$ equity stake.

    the true value, is much, much less.
  10. Facebook should worth way less than lavalife; which sold for 400m few years ago.
    #10     Apr 14, 2008