So What is Facebook Really Worth?

What started as a dating website limited to students of Harvard is now a worldwide phenomenon. Yes, I am talking about Facebook. Facebook is one of the most frequently visited websites in the world. It is presently the best social networking tool. People of all age groups are on it be it students, teachers, parents or grandparents. The popularity of the website has led to the massive success of Mark Zuckerberg, the 25 year old founder, CEO and president of the company.

One of the “hot” topics of conversations these days is “What is Facebook worth?” So what really is the value of Facebook? There are many calculation and valuations been done but there is no definite answer as to what really is the actual value of the firm.

In his Deal Journal article “Is Facebook really worth $10 billion?“, Gregory Corcoran talks about how different deals and offers provided to facebook determine different values for the firm. Microsoft put down $240 million for a 1.6% stake which makes the company worth $15 billion. Other offers include $200 million dollars for a 2% stake in the firm by Digital Sky Technologies.

Without sufficient financial data valuing a company it is hard to value such a closely held company.

I think other factors such as valuing of comparable firms (likes of MySpace) will play an important role in valuing Facebook.

What do you think?

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    • favingj
    • June 17th, 2009

    Millions yea, billions you got! I remember yrs ago when i was in college, students were fighting to get facebook for our school. Now i think 4 or 5 yrs later i could facebook people my parents work with and even grandparents. If you get multi generations in on anything, its sure to bring in bank.

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