Is facebook really worth 10 billion?

Discussion in 'Economics' started by noob_trad3r, May 26, 2009.

  1. Yeah, you're too much of a noob.
  2. lol
  3. "Social networking" today is not that different from all the dot com startups of the late 1990s. While some went on to prosper, most ended up bankrupt and people today wouldn't recognize most of the names. The founder of Facebook, if he is smart, should take the $3-4 billion that is being offered and sell the company. Beyond that, he is probably pushing his luck.
  4. Why wont he take 2-3billion? If someone offered me 2-3 billion dollars for a website I would give them the keys to the office and not look back.
  5. Founders tend to overestimate the value of their companies (look at Jerry Yang and Microsoft's offer for Yahoo last year), and they usually end up missing the window of opportunity if their companies are not successful already.
  6. S2007S


    Here we go again, I tried not to post the actual article because I just think how sad it is that a company that has NO revenue plan could be actually be worth anything to begin with. As I said numerous times already, this company isn't even worth $500 million. This social networking company will be forgotten about just like the rest of them as soon as something new comes along.

    When you have HUNDREDS OF MILLIONS OF PEOPLE USING A SERVICE AND CANNOT PROFIT a damn cent from it there is something wrong, I don't care what anyone says. What kind of business is worth $10 BILLION when not even a single part of the business is profitable. Remember AOL and Yahoo, remember all those great B2B companies and what about Friendster and Myspace. This is just a trend, it WILL NOT LAST, remember that.
  7. eagle


    Paper valuation means nothing which went from $15B to $10B and what next? But look into the real cash injection that so far had $440M (240 + 200), and with that amount it can almost only be used for operation and maintenance and a little bit for R&D, not for pushing something forward significantly. Unless Facebook get a significant one-time cash injection or be fully acquired by another big company that can inject huge cash for R&D. Anyway no company yet that can see a good reason to put lots of cash into Facebook, maybe the business model itself won't be very profitable.
  8. I'm the odd one here but I think facebook is justifiably worth a lot. If you look at the web companies that have got really big, they have tended to stay really big. Google and Yahoo being two examples. The problem with most start-ups is they never reach critical mass. Facebook has reached crictical mass hence the high valuation. Facebook is started to shape up a platform for organisizing your life online.

    Facebook connect already allows you to log into to other sites using your facebook ID. Why is this important?

    Well the revenue opportunities are endless. Facebook can remindsme that it's my Mums birthday then an app gives me an option to send flowers. My ID and payment details are already validated, I press a yes button and by Mum is sent flowers. Facebook gets a commish. This is just one example of how it will work.

    Times that by millions of transactions and you have your valuation figure.

  9. Div_Arb


    This hypothetical revenue situation crap drives me up the wall. Get real, you will be hitting the 'spam' button after the fiirst 100 emails you receive reminding you of this and that with a link to go buy some useless crap. If they really had a business model that could so easily be monetized, don't you think they would already be doing it?
    #10     May 26, 2009