Facebook valued at USD 6.5bn

rpm

rpm

Admin
Staff member
Joined
Jul 22, 2003
Messages
66,806
Reaction score
5,057
Location
Johannesburg
Facebook valued at USD 6.5bn

A Russian Internet company is offering to buy $100 million worth of stock from Facebook employees in a deal which values the fast-growing social network at $6.5 billion
 
If I was the owner I would just sell it all in one pop and retire for the rest of my natural life and after life :D Damn none of his offspring or offspring's children will ever have to work again ......
 
I don't understand why anyone would pay that price for a mere 1.5% of the company. Sure it's a great social network and I love it to bits. But till this day Facebook still haven't found a model for generating revenue.

One really has to wonder what model does these companies use to estimate the price.
 
***** I would sell it for $1bn dollars and retire never having to work again ... sigh
 
Origin248 said:
I don't understand why anyone would pay that price for a mere 1.5% of the company. Sure it's a great social network and I love it to bits. But till this day Facebook still haven't found a model for generating revenue.

One really has to wonder what model does these companies use to estimate the price.
Click to expand...

Advertising?

Damn you cannot be worth 6 billion if you have no found a way of generating income surely?
 
Yea i am sure they do but origin reckons they have not found a way to make income, i thought advertising was the reason they are worth 6 billion.
 
Origin248 said:
I don't understand why anyone would pay that price for a mere 1.5% of the company. Sure it's a great social network and I love it to bits. But till this day Facebook still haven't found a model for generating revenue.

One really has to wonder what model does these companies use to estimate the price.
Click to expand...
Besides incredibly targeted ads?

Now Twitter is another matter.
 
Facebook makes money from ads but it costs to run and host all those images, video submitted by it's users, it's not really that profitable but it's a badly run business imo.
 
How so? It costs very little to host stuff overseas, if you ask me it is a well run business worth 6 billion

How is a business worth 6 billion not run well exactly?
 
killadoob said:
How so? It costs very little to host stuff overseas, if you ask me it is a well run business worth 6 billion

How is a business worth 6 billion not run well exactly?
Click to expand...

I watched a bit of it on BBC world news a few days ago..

In an interview with BBC, one of the top executives of Facebook talked about it.

Well, I am not that much optimistic about the company becoming profitable in 2010. 200 million may sound to be an impressive number but the reality is that a large portion of them come from outside of Europe and America. If you have a blog or website and you get most of your visitors outside of Europe and America then you know that that traffic do not bring a lot of money from the advertisers. This is the main problem of Facebook. They have to spend huge money for bandwidth and web space for the users but they do not get good return on their investment.
Click to expand...
http://laptopcom.blogspot.com/2009/07/can-facebook-become-profitable-from.html
 
Its only worth that much I reckon because of all the hype around the site and its fame. Investors feel it must be worth a lot because of its popularity, inspite of the fact that it doesnt appear to have a business model and I don't think advertising will bring in that much.

Such is the way of web 2.0, there are lots of sites that seem to get bought out because of their popularity.

They should sell it before investors loose interest and its value drops. Oneday something else bigger than FB will surely come along.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X