Saturday, December 22, 2007

It always comes down to revenue

In an earlier post about Facebook's valuation, I commented that unless they could monetize their user base, they were living in a bubble.

Fred was interviewed by BusinessWeek and was asked point blank what he thought Facebook was worth if he had to buy it today. The answer was $5B to $7B, roughly 1/3 the price Microsoft the others paid for the stock earlier this year.

While I think Fred's being pretty realistic, I think his number is high. He does nail it when defending his price that they need recurring, sustainable and growing revenues.

1 comment:

Natalia said...

Nice one here. I am always wondering how these social net-working websites make money. Your view are refreshing!