Is Facebook really worth $10 billion?

With MSFT planning to pay $500m for only 5% stake, it values the comaony at $10B. Are they really worth that much? Sorry if this has already been covered.

 

there has to be something interesting otherwise msft wont have taken interest, let c where it grows in a year's time.

 

I'd like to know how much facebook makes from showing ads.

 

basically its all about brand, the whole world knows facebook, and the kind of revenues it will generate will be massive 1-3 yrs down the line. thats the way normally big sites work.

 

I think I'll wait until someone buys the other 95% before pegging it to that value.

 

Maybe MSFT is losing rationale in their bid to chase Google's glory on the internet scene.

 

this shows that money aint enough, you need luck as well
even after paying such huge amount they managed to get 5% stake only. certainly something good for them then nothing.