Facebook worth $50B? which makes Napster founder an instant Billionaire?

[JEDI]

http://www.prnewswire.com/news-releases/facebook-raises-15-billion-114383494.html

1/21/2011:
Facebook Raises $1.5 Billion which makes it's valuation approximately $50 billion which is bigger than Ebay

And that means Napster founder is now a billionaire?!
now waiting for RIAA to go back to suing his ass now that he has $$$

 

[yllus]

Technically speaking I believe that's their market valuation, which is something quite different from what Mr. Fanning would receive if he attempted to cash out today.

 

[Zebo]

Not for long once people start asking questions asked of any business: how do you make money? Anyone remember Myspace?

"Our business continues to perform well, and we are pleased to be able to bolster our cash position with this new financing"

Why would one give up part of their company or need a cash injection that was doing well? Pump and dump coming???

 

[0roo0roo]

yea the 500 share holder thing, they would be buying his stock back from him ig uess.

 

[WaTaGuMp]

Like the old saying, its only worth what someone is willing to pay for it.

 

[Capt Caveman]

Repost from a couple of weeks ago.

 

[trmiv]

Technically speaking I believe that's their market valuation, which is something quite different from what Mr. Fanning would receive if he attempted to cash out today.

Wrong Napster founder. Sean Parker is the one that was involved with Facebook.

 

[Fritzo]

Wow...a bubble in action. This will be fun when something new comes along in 2 years and it pops.

 

[AnonymouseUser]

Can you say "Vonage"?

 

[Exterous]

Wow...a bubble in action. This will be fun when something new comes along in 2 years and it pops.

Correct me if I am wrong, but I was under the impression that Facebook does not really generate much income. If I am correct this valuation is then based on popularity? That sounds like a great investing idea!

 

[JEDI]

Can you say "Vonage"?

2006 IPO @ $17/share

2008: $1.42/share
2009: .31/share

 

[aldamon]

Wow...a bubble in action. This will be fun when something new comes along in 2 years and it pops.

How long have they said that about Google? FB is a different animal now.

 

[AnonymouseUser]

2006 IPO @ $17/share

2008: $1.42/share
2009: .31/share

Bingo! :awe: Facebook has topped.

 

[gorcorps]

How long have they said that about Google? FB is a different animal now.

No kidding. People saying that facebook is just a fad and will die just don't understand how fast they're changing and growing. They're pulling in ad revenue like nuts, and they have plenty of small partnerships with hosts like godaddy and such where you can advertise your site on facebook and just add it to your godaddy account. They started offering apps/games that now include microtransactions, and some are making an insane amount of money. I'm not sure how much goes to the game dev and how much to facebook, but fb gets SOMETHING I'm sure.

They're no longer just a place to chat with people and add pictures, they're dipping into advertisement and casual games leaving PopCap wondering if they'll be the go-to casual game stop anymore. I'll bet they've already taken a massive hit.

Facebook the social interaction site may be just a fad, but Facebook the COMPANY is just getting started... and they aren't going anywhere.

 

[silverpig]

Technically speaking I believe that's their market valuation, which is something quite different from what Mr. Fanning would receive if he attempted to cash out today.

It reflects what the company is worth, hence what the shares of stock are worth, hence what he would get if he cashed out today yes. If you own 50% of a $500k house, you get $250k when it sells. And if it was just him trying to cash out now, he could probably get it too. I bet there's $2.5B (or whatever his share is) sitting out there that wants in to facebook.

Last I heard FB was cash flow positive (ie making money). When this happens you have demonstrated that your business is viable. You can then go to investors for a large chunk of cash to support a future expansion plan. The money they got from GS isn't to piss away on salaries, fibre, and fancy meals. They had to show that they had a plan for the money, and that it would generate a significant return.

The plan for the next year for FB is probably to add infrastructure and a bunch of new money-making services so they can make the company look as attractive as possible before the IPO. At that time, Parker will become rich in a cash sort of way.

 

[ViviTheMage]

cash out, start a REAL venture.

 

[JS80]

Facebook will be worth $100b in 5 years. They have barely tapped their revenue potential.

 

[Exterous]

No kidding. People saying that facebook is just a fad and will die just don't understand how fast they're changing and growing. They're pulling in ad revenue like nuts, and they have plenty of small partnerships with hosts like godaddy and such where you can advertise your site on facebook and just add it to your godaddy account. They started offering apps/games that now include microtransactions, and some are making an insane amount of money. I'm not sure how much goes to the game dev and how much to facebook, but fb gets SOMETHING I'm sure.

They're no longer just a place to chat with people and add pictures, they're dipping into advertisement and casual games leaving PopCap wondering if they'll be the go-to casual game stop anymore. I'll bet they've already taken a massive hit.

Facebook the social interaction site may be just a fad, but Facebook the COMPANY is just getting started... and they aren't going anywhere.

Ah - i stand corrected

 

[QueBert]

Facebook will be worth $100 in 5 years.

ftfy

 

[GagHalfrunt]

Facebook will be worth $100b in 5 years. They have barely tapped their revenue potential.

Their current market cap is based on pie-in-the-sky projections of their revenue potential. When they try to turn the traffic into dollars is when the bottom will drop out.

 

[Zebo]

No kidding. People saying that facebook is just a fad and will die just don't understand how fast they're changing and growing. They're pulling in ad revenue like nuts, and they have plenty of small partnerships with hosts like godaddy and such where you can advertise your site on facebook and just add it to your godaddy account. They started offering apps/games that now include microtransactions, and some are making an insane amount of money. I'm not sure how much goes to the game dev and how much to facebook, but fb gets SOMETHING I'm sure.

They're no longer just a place to chat with people and add pictures, they're dipping into advertisement and casual games leaving PopCap wondering if they'll be the go-to casual game stop anymore. I'll bet they've already taken a massive hit.

Facebook the social interaction site may be just a fad, but Facebook the COMPANY is just getting started... and they aren't going anywhere.

There are no public financials where are you getting this info?

 

[Zebo]

Facebook will be worth $100b in 5 years. They have barely tapped their revenue potential.

This is gonna be good.

 

[Zebo]

It reflects what the company is worth, hence what the shares of stock are worth, hence what he would get if he cashed out today yes. If you own 50% of a $500k house, you get $250k when it sells. And if it was just him trying to cash out now, he could probably get it too. I bet there's $2.5B (or whatever his share is) sitting out there that wants in to facebook.

Last I heard FB was cash flow positive (ie making money). When this happens you have demonstrated that your business is viable. You can then go to investors for a large chunk of cash to support a future expansion plan. The money they got from GS isn't to piss away on salaries, fibre, and fancy meals. They had to show that they had a plan for the money, and that it would generate a significant return.

The plan for the next year for FB is probably to add infrastructure and a bunch of new money-making services so they can make the company look as attractive as possible before the IPO. At that time, Parker will become rich in a cash sort of way.

Or even better create SPV so prying eyes of SEC regulations and audits can't be done before IPO because hype machine will buy it up anyway on tilt. At which point it'll be dumped and goldman deposits dumptrucks full of retards money in their bank.

 

[JS80]

If anyone is willing to put money where their mouth is, I will put up to $1000 to bet FB will be worth more than $50b in 5 years.

 

[ImpulsE69]

Didn't they say the same thing about Myspace until Facebook came along? I don't use either so I have no idea how Facebook makes money. I assume with ads, but if they are making that much..sounds like way too many ads for me.