MSFT paid $240m for Facebook stake

Discussion in 'Wall St. News' started by a529612, Oct 24, 2007.

  1. Agree. They already have a stenglehold of the market.

    Nothing can unseat facebook. It is easily worth 30 billion or more like FOX or CNN. 15 billion is too cheap.
     
    #11     Oct 25, 2007
  2. I know it has great potential with about 50 million registered users, but right now, Does facebook even make any money?
     
    #12     Oct 25, 2007
  3. Um it makes 150 million a year
     
    #13     Oct 25, 2007
  4. xxxskier

    xxxskier Guest

    yes, facebook is big right now. but all those members could easily bolt to the next "greatest" thing. anyone remember myspace? as facebook tries to monetize its traffic with ads they risk irritating their fickle user base.....college students.

    although msft had great earnings, the joke is on mr. sofite as far as the facebook deal goes. for 240M they get 1.6% of equity, barely enough for them to receive a qtrly report in paper and not enough for a board seat.
     
    #14     Oct 25, 2007
  5. what a joke, facebook is worth 2.5billion max. it has zero barrier of entry.
     
    #15     Oct 25, 2007
  6. I agree. It's all about intergration, where MSFT had the edge up until now.

    Did see that RIMM is launching a facebook application for Blackberry ? How's that for intergration. Forget about using MSN Messenger on a cell phone, that old school now.

    Facebook instant messenger will trump them all. Google could not come up with an IM to beat MSFT and YHOO, but now facebook could be the next IM, too.
     
    #16     Oct 25, 2007
  7. Um yea try creating a social networking site that gets even 10,000 users
     
    #17     Oct 26, 2007
  8. The problem is valuation. I really like that post saying the internet will grow 100x when countries like China and India come in.. they said the same thing 7 years ago.

    Social networking is here to stay, but as another poster said, what's Facebook competitive advantage?
    All those college apps, yeah good idea. But the majority of people are not college students.
     
    #18     Oct 26, 2007
  9. Facebook's advantage is that is has a complete stanglehold over social networking.

    Like microsoft with opperating systems or apple wth music players. New programs and hardware keeps coming out buy nothing can compete with Windows or Ipod or Blackberry.
     
    #19     Oct 26, 2007
  10. xxxskier

    xxxskier Guest

    facebook employees have been looking at your profile and watching what profiles you look at. it may not sound too concerning until you read about facebook employees (who's average age is 23....not a mature workforce) who are spying on users and then call the user to tell them about it:

    http://valleywag.com/tech/scoop/facebook-employees-know-what-profiles-you-look-at-315901.php
    http://tinyurl.com/3b6hhj

    facebook is great, no doubt about it. but there are some serious problems thatcould impeed its further growth namely....privacy....and trying to monetize of its large fickle user base. 150M revenue on a co. that values itslef at 15B....simply put, they need a lot of work.
     
    #20     Oct 28, 2007