15 reasons why Facebook is worth $15 billion
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$15 billion?? Yeah, we know, that’s an insane sum of money, but could Facebook really be worth that much? Well, the answer is yes…sort of. As we all know, Microsoft just purchased 1.6% of the company for $240 million. Do a little math, and you’ll soon see why $15 billion isn’t out of the realm of possibility. In honor of this startling revelation, the BBC has put together a rather compelling list of 15 reasons why Facebook might, in fact, be worth that exorbitant sum. Our favorites?
- The network has gone viral in the last 12 months, with more than 50 million users worldwide and a user base that is growing faster than great rival MySpace. According to Facebook, it adds 200,000 new users each day.
- According to a report, 233 million hours of work are lost each month in the UK due to staff looking at social networks. Advertisers can now target people when at their desks.
- Every major content firm with an online presence is either working on a Facebook application or has already launched one - from Google to the BBC
We’re still not sure if the $15 billion price tag will hold water, but Facebook is undeniably valuable. What do you think, dear readers…how much would you pay for Mark Zuckerberg’s online empire?
I wouldn’t want to buy it. It is very well run and managed I would hate to be the one that screwed it up!
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15 billion is not even clost to the DOD’s budget
DOD’s budget is in the neiborhood of $400billion not counting black budget, black projects, and DARPA
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The biggest reason Facebook beats myspace is, it doesn’t appear that you can have gawd-awful looking page designs on it — although that might change of course.
Most myspace pages make my eyes bleed.
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I got $6 bucks on me man…i can go to the ATM and get another $40 tho….
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The article doesn’t really present any real compelling argument as to why Facebook is worth £15bn or roughly the GDP of Namibia. It suggests that because Microsoft paid a load of money for a small stake, then it must be worth that much. Well hey, if Wikipedia says so, it must be true.
In my view, Facebook is probably worth $500m as I don’t see it making 5x - 10x the price in revenue (i.e. making $75bn in revenue) to warrant such a price tag.
Just my 2p.
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200k new users per day? So 1.4 million new users a week? That would mean 60+ million new users a year. That doesn’t make any sense. BGR might want to find a fact checker for the site. Plus, the defense budget is way higher than 15 billion.
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Here today, myspace tomorrow. Th problem with social networking sites is that their userbase is notoriously fickle.
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i dont see facebook beating myspace i hate the way face book is laid out
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Pete, your 100% correct there. I can see a new “open source” networking site coming along and stealing Facebook’s momentum like they did to myspace. their all trendy sites.
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while the number of account adds is up for speculation, I find the problems with these sites are all around the same issue….retention. While kids are still in college/high school they have plenty of time to use these sites. Once they move out of that phase of their life, get busy with their jobs/family/etc. ppl tend to stop checking all the time, their account is still up (and counted) but for all intensive purposes is dormant. I have seen it happen with most people i know that use these sites. Odds are facebook will never attain the height of publicity it has now, so I think over time the new accounts will fade, combine that with the decreasing usage as people get older, and I think a 15B or anything remotely close to that is insane seeing as its at the top of its game right now.
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I’m not sure how you might put evaluations together, but as a private company they can value their company at whatever they see fit. Microsoft paid $240M for 1.6% of Facebook. Using that percentage, we multiply $240M x 62.5 points and get $15,000,000,000. That’s their evaluation and what they are selling points for. Has nothing to do with sales at this point because they already got someone to bite. If Microsoft jumped and Facebook is losing money and losing visitors its irrelevant because again, it is their internal evaluation based on what percent is selling for what price.
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Well when an IPO happens then we’ll all know the real market value. I’m willing to bet it will wind up much higher than 15 billion.
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I’ve got $29 on me and can go to the ATM and pick out another $300…
Beat that Eddie.
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Well, all that personal data being collected from people is worth alot, I don’t think the price is an overstatement..it’s a data miners paradise.
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4. US research reveals that Facebook users come from wealthier homes and are more likely to attend college than MySpace users - increasing that attraction for advertisers.
Wow team, good job on that research. Was it the fact that we have to sign up with college email accounts that tipped you off?
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A lot more than Myspace. I have NEVER seen a false Ad supported friend try to invite me to her online web cam on Facebook. I am willing to bet that 60% of Myspace’s user base is computer generated marketing schemes. Everytime I post a comment - BAM three new friend requests? Come on. People use Facebook and for now (thankfully) it has not been undermined by this new wave of SPAM. It looks like Facebook has managed to learn from Myspace’s inherit problems, which will manage to collapse all of its user-base, with the exception of the bands/Music is done a nice job of promoting. Facebook is highly superior in content, database driven relationships, and useful third party apps that are kinda cool. I’d buy stock if I could…
-Ariel
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I wouldn’t pay a dime to buy Facebook, I rather work there and be part of such a great website and team of geniuses. Have you seen there offices? They’re freakin amazing!!!
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IF I WAS FACEBOOK’S FUNDER I WILL SALE RIGHT NOW..BECAUSE, AS WE SEE..LATELY YAHOO..AND MY SPACE ARE LOOSING WEB_RATINGS..DUE TO NEW SITES..THERE IS ALOT OF SPECULATION AROUND NEW SITES..BUT ONCE SOMETHING ELSE COMES UP, RATINGS ARE GOING TO DROP DOWN..AND INTERNET USERS WILL MOVE INTO THE NEXT NEW THING ON THE BLOCK..WE’LL SEE WHERE IS FACEBOOK 3YRS FROM NOW..AND WHO WILL BE THE NEXT YOUTUBE OR THE NEXT FACEREALITY.COM! GOOD LUCK!
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People don’t seem to understand FB in nothing new in fact it’s a bit crap.
It has 60m accounts some of which are real people.
It’s not worth tuppence $ it’s vulnerable.
MS have paid $240m to push advertising and spy on the habits of possiblly 30m people ie $8/head that’s rational, Scaling this up to a 15Bn value isn’t. Don’t get me started on Google..
I’ve been working with internet for 12 years now.
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$15 billion? Thats it? Perhaps my step father would be interested in buying it. After all, he is Larry Ellison.
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