Facebook valued more than CBS?!?

Mashable just published an article stating that facebook is now valued at $6.5 billion dollars.  That’s more than CBS, Discovery Communications, and Macy’s.  Mashable’s article was in response to a report released by the New York times which articulated that fb employees were allowed to unload their stocks at $14.77 a share giving them a $6.5 billion dollar valuation.

It’s very true that Information is power and the amount of psychographic data and usage trends facebook has at their finger tips is scary (and I’m not the only one that thinks so: Do you have a FB video).

However as far as profitability and being a viable business I think a valuation of $6.5 billion is absurd. They have raised $716+ million in funding / multiple rounds and in my opinion have too high of costs (700 employees) and not enough revenue coming in for such a valuation. http://tinyurl.com/2cg44

I have a few friends that work at FB and am connected by a 1-2 degrees to some higher up sales managers/executives and last I heard they were not happy at all.  Even though it was a while back my thought is that Microsoft’s $240M investment into Facebook for 1.6% giving them a $15 Billion dollar valuation still is a large reason why they are valued so high.  It’s no doubt that a company like Microsoft or Google can better monetize facebook then facebook themselves can, but how and to what extent remains to be seen.

If you had the money would you buy fb for even $1B?

I wouldn’t.

just my $.02s

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Comments

  1. @Ryan I Know! I like facebook and check it just about everyday, but just don’t think from a business standpoint it is worth as much as the valuation states.

    Thanks for commenting

  2. Wow, 6.5 billion, that’s not too shabby…. It really is crazy when you think about it. If I had the money, would I buy it? Hmm I don’t think so lol. But… Zach the founder of facebook needs to sell it, before the opportunity is out the door.

  3. I want to know what facebook could potentially, realistically be worth if they had an IPO. I know that at current, facebook is worth $3-4 billion. I would like to know what they could fetch at peak value in an IPO? Please answer for best answer.
    4 months ago (Tiebreaker)

  4. @Ryan looks like i accidentally deleted your comment while cleaning my spam comments. Sorry

    @Joey I had an interesting conversation with a software executive and very successful entrepreneur. He mentioned that he feels we are about 6 months to 1 year away from a revenue model for strong revenue model for facebook and twitter. He mentioned that he thinks people would pay $5-$10 per year for facebook and that’s the model they will ultimately persue. If Facebook implemented this model they would instantly raise their value so much. With this ammo in the back that adds a lot of value in my book. $6.5 Billion dollars though- don’t know. Time will tell

  5. @mycarpurchase

    geez I don’t know. It would be a lot more if they implemented the revenue model I mentioned above then went IPO. I wish I had a better answer for you. As I said to Joey time will tell. I think that’s absolutely the route they want to take otherwise they would have accepted the offers from major players like Viacom and yahoo.

  6. There is nothing special about any social network. They all have a few individual features but the rest is the same – you set up a profile and network with your friends. When people go on about one, they only go on about it because all their friends are on it.

  7. I wrote a new LiveJournal blog post about 20 minutes ago, and have Facebook set up to import my blog posts. It’s already imported all my old ones; how long does it take for Facebook to check for new blog posts, and to import them to my Facebook notes.

  8. Most analysts agree that most young companies are worth anywhere from 1-10 times their expected revenues, putting Facebook solidly worth at most $1.5-2 billion dollars.

  9. When you “compare people” you are asked a series of questions such as “who is a better friend” and “who would you rather date”. You are given two choices from your friend list and you pick the one that pertains to the question the best.

  10. Omygod 6.5B$ is not a small amount. Hey guyz have you ever compared alexa stats b/w facebook.com and google.co.in ??
    Facebook is driving greater traffic than google.co.in.. It is 8times greater than google.co.in traffic.

    When you check difference b/w facebook and google.com they are almost equal. Still Facebook beats out google.com.. Astonishing :O

    I just want to say if Facebook converted into search engine it can easily beat-out yahoo and msn.. LOL

  11. The original idea behind facebook was to share photos with friends, but now it has become so much more (now people share text, videos, music, interests) anything you can think of really.

  12. Most analysts agree that most young companies are worth anywhere from 1-10 times their expected revenues, putting Facebook solidly worth at most $1.5-2 billion dollars. 😉

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