Facebook and Microsoft do deal

[hugegrowth]

Facebook® and Microsoft Corp. today announced that Microsoft will take a $240 million equity stake in Facebook's next round of financing at a $15 billion valuation, and the companies will expand their existing advertising partnership.

http://biz.yahoo.com/prnews/071024/aqw247.html

 

[DomainMagnate]

Facebook = $15 bln?
I wonder what revenue does it make

~MG

 

[Gerry]

PALO ALTO, Calif. and REDMOND, Wash., Oct. 24 /PRNewswire-FirstCall/ -- Facebook® and Microsoft Corp. today announced that Microsoft will take a $240 million equity stake in Facebook's next round of financing at a $15 billion valuation, and the companies will expand their existing advertising partnership. Under the expanded strategic alliance, Microsoft will be the exclusive third-party advertising platform partner for Facebook, and will begin to sell advertising for Facebook internationally in addition to the United States.

Facebook continues to experience strong growth both in the U.S. and international markets; 59 percent of Facebook's users are outside the U.S. With an average of 250,000 new users registering each day, Facebook continues to be one of the most-trafficked sites on the Internet.

WOW!

 

[tonyfloyd]

WOW!

wow is right!

 

[hugegrowth]

finally Microsoft does a deal.

 

[PeterMan]

You know what is crazy? The guy who started this is like 23 or 24 years old and he now has a business that is worth $15 billion... Why he doesn't sell out and live the high life on a beach in Mexico with a margarita and about a dozen Senoritas is a mystery to me... :?:

 

[DomainMagnate]

Why would he sell? He enjoys what he does..

~MG

 

[GAMEFINEST]

i prefer facebook over myspace, facebook has less/no spammers ..

 

[hugegrowth]

some people are driven with their work and thrive on it.

 

[pelican]

You know what is crazy? The guy who started this is like 23 or 24 years old and he now has a business that is worth $15 billion... Why he doesn't sell out and live the high life on a beach in Mexico with a margarita and about a dozen Senoritas is a mystery to me... :?:

he dont need to sell. probably already enjoying life now.

 

[Shaggy]

Facebook = $15 bln?
I wonder what revenue does it make

~MG

Well you figure, the min of selling off a high end site is about 10 years rev. Could be alot more for a site like this.

So $15,000,000,000 / 10 years is $1,500,000,000/yr. Give or take a few million. :uhoh:

Even at 20 years rev is $750,000,000/yr. Still not all that bad

 

[tonyfloyd]

Facebook has like $100 in revenue....

see this article below....pretty interesting..

http://www.calacanis.com/2007/10/11/facebook-reality-check-its-not-worth-100b-and-it-wont-crush/

 

[DomainMagnate]

Well you figure, the min of selling off a high end site is about 10 years rev. Could be alot more for a site like this.

So $15,000,000,000 / 10 years is $1,500,000,000/yr. Give or take a few million. :uhoh:

Even at 20 years rev is $750,000,000/yr. Still not all that bad

That is usually the case, but I don't think Facebook is making anywhere near that.
Facebook has 30M uniques per month, about half of myspace's traffic.


~MG

 

[Gerry]

Just read a story (WIRED, I believe...or maybe Technology Review) about the guy who founded PayPal and is needless to say rather well off. Young, wealthy, lives in SF.

What is he doing?

Starting other businesses. He loves what he does.

These guys are incredible.

That is usually the case, but I don't think Facebook is making anywhere near that.
Facebook has 30M uniques per month, about half of myspace's traffic.


~MG

I think the primary difference is MySpace is now the realm of tweens, teens, and 20 something. Facebook would have a much larger demograhics of (dare I say) older folks and perhaps working professionals.

My money would be on face book have a much more affluent and perhaps educated demographics. Thus, the valuation I would guess.

And 250,000 new sign ups a day??? That's incredible!

 

[tonyfloyd]

Here's what Doc's talking about......unreal....

http://www.nytimes.com/2007/10/28/business/28invent.html?_r=1&oref=slogin

 

[Onward]

You know what is crazy? The guy who started this is like 23 or 24 years old and he now has a business that is worth $15 billion... Why he doesn't sell out and live the high life on a beach in Mexico with a margarita and about a dozen Senoritas is a mystery to me... :?:

I believe Facebook was a direct ripoff of another site the facebook founder was a programmer for in college at Harvard...I think there has been an ongoing lawsuit....Has anyone else read about this...or am I just tripping?

 

[tonyfloyd]

I believe Facebook was a direct ripoff of another site the facebook founder was a programmer for in college at Harvard...I think there has been an ongoing lawsuit....Has anyone else read about this...or am I just tripping?

no...u aint tripping... i remember reading about that also.....

 

[petrosc]

this part was funny

1. Facebook worth $100B.
First, a growing company with ~$100M in revenue this year might be worth 10-20x top line revenue in a hot market like this, or $1-2B. A company with $25M in profits (if Facebook has that) would be worth 50-100x that in a red-hot market, or $2.5-$5B. Those number are the number we heard folks were willing to pay over the last two years (i.e. Yahoo). So, to say Facebook is worth $100B is to say that Facebook is worth... wait for it.... 1,000x top-line revenue. In other words if Google makes $14B this year in top line they would be worth--according to the 1,000x revenue metric--$14 trillion (I've check my math 10x... I think that's the number).