Ah, I misread. I thought MSFT was valuing their 1% share at $15B. Well, that's a lot more reasonable. But still insane.
With 40 million users, and 150k more daily, I doubt Facebook takes a dive. If they do? The cash they've made from advertising alone will support him and all the other founders for LIFE, easily. Besides that, how does this look on a resume': Founder of Facebook.com
Nothing special, Facebook new marketing techs, they want to relax their share holder's they got MS with them, and luring the new ones as well.
My friend told me about this, and its blantantly stupid. What you're saying is that, if I go out and place a bid on XYZ corp.'s shares (a close to bankruptcy company) of 100x of its market price ($1 share going for $100), the company is now worth 100x what is was before? No, just because crazy deal is made, it does not change anything.
I don't think it is too much. I actually think it was a good idea and a good price. MySpace sold for 600 or 700 million and was making next to nothing in revenue at the time. If we went on people’s general calculation that it is worth 2 years revenue then it would have only sold for 20million. Within a year it turned over 800 million in profit and is set to grow to way over a billion profit next financial year Now Facebook is way better and is growing way way faster than MySpace. It is not so to speak "monetised". So it has a huge potential. And lastly if it fell into the hands of Google, Microsoft would quite literally shed a tear! I think I read somewhere that some investment bank said that Facebook will be worth 100bilion in just under 2 years. Quite crazy isn't it.
not sure what school you went to, but 15 billion times 100 = 1,500,000,000,000 thats a lot more than 150 billion
Not sure where you are getting these stats, because they bought 1% of it at $240 million. So that means 240 x 100 = 24 Billion.
Wow Someone is telling Facebook is worth $1500 billion? I dunno. I'l have a look around and report back. This means that the Facebook company is worth $ 1.5 Trillion ?
Facebook is only worth what some big company is willing to pay for it. Although it is a very good idea, there is always "the next big thing" just a click away. $15 billion for the site is crazy money, but when you are popular everyone wants a piece of you.
To clarify the mass confusion. Microsoft purchased a 1.6 percent stake in Facebook for $240 million 240000000/.016 = 15000000000