MSFT paid $240m for Facebook stake

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

  1. So offer a tool that can port everything over to the new site, I highly doubt teenagers and college grads care about "invested time" if they can easely move their shit over, young people is all about popularity and when facebook runs outta juice people will move on.

    The reason I don't consider facebook long term value like google is because people don't need facebook, lets face it everyone uses google because they depend on it for search and when they are searching for something they want to buy, the keyword advertising systems works extremely well. Now look at facebook, it's a place for young people to snoop around and look at what their friends are doing, what part of this is a neccessity? does it increase productivity? the advertising placed on the site will have much narrower audience, this is why Yahoo failed they don't provide a vital function that is used by all age groups. Do I think facebook sucks? no, I think they've done a great job, however such a high valuation for such limited functions is just insanely stupid as it has no way to sustain value unless it's business strategy changes significantly.
     
    #31     Oct 29, 2007
  2. Facebook is a beast in the making. You guys should do more research about it before posting. MSFT wouldn't have paid 240 million for less than 2% if it wasn't worth the money. The kid that started Facebook is currently worth 5 billion. Not bad for a 23 year old kid. He refused a billion dollar offer last year from YAHOO. He's putting the company public in 2 years. Should have a cap of around 45 billion by then making the 25 year old worth 15 billion. They don't call him the next Bill Gates for nothing. Hate on my friends.
     
    #32     Oct 29, 2007
  3. and when the next market crash comes he'll be worthless. and mark zuckerberg isn't a genius, he's just some kid that made a website, not even close to Bill Gates. Larry Ellison of Oracle is someone I would call a genius, Steve Jobs is another genius. Besides he isn't worth 5 Billion, just because MS bought some shares at that valuation doesn't mean anyone else will, if they truely believe it's worth that much why doesnt MS buy more shares? they certainly have enough cash stuffed in their sofas.
     
    #33     Oct 29, 2007
  4. The kid has a 20% stake in Facebook.
    On Microsofts valuation thats $3billion.

    Obviously this guys not after money otherwise he wouldve took Yahoos $200million (his stake) cashed out and lived it up for the rest of his life.

    Facebook earnt $100million last year.

    So Microsoft paif 150x earnings.
    Certainly cheaper than Google at about 200x.
     
    #34     Oct 29, 2007
  5. Where did you find the Facebook earnig data?
     
    #35     Oct 29, 2007
  6. trendy

    trendy

    Yeah, and Ebay wouldn't have paid 2.6B for Skype if it wasn't worth the money. Ooops, well, what's a 1.4B write-off amongst friends any way?

    Oh, and let's not forget AOL Time Warner's 54B write-off of its merger with AOL. Corporations fuck-up investments all the time. MSFT is no different.
     
    #36     Oct 30, 2007
  7. The next bill gates what a joke you obviously have no grasp what Gates has done over the past 20 yrs not all has been for the good but his mark is massive.

    This bloke created a website
     
    #37     Oct 30, 2007
  8. Facebook took 100m in revenue, not earnings. MS paid more like 500x earnings, and google at 200x? are you joking? google is around 60 p/e, they make over 4 billion a year on revenue of over 12 billion.
     
    #38     Oct 30, 2007
  9. \

    I googled it.
    Tried to find the page again but couldn't find it.

    What i could find just now were estimates ranging from $50m-150m.

    Did you hear anything different?
     
    #39     Oct 30, 2007
  10. Mark Zuckerberg's stole the whole idea behind facebook. Within months of facebook being launched the 3 Harvard University students he stole the idea from sued and it's not over yet.

    Story on lawsuit
     
    #40     Oct 30, 2007