“The biggest concern is the $100 billion valuation that Facebook is seeking,” Dan Lyons writes. “To get an idea how outrageous this is, consider that Apple—the biggest, most powerful, most lucrative tech company in the world—sells for just over three times last year’s revenues. If you valued Facebook that way it would be worth only $12.5 billion.”
(via newsweek)
Source: thedailybeast.com
I talk to Sam Hamadeh of PrivCo about the potential pitfalls in Facebook’s S-1 filing yesterday and why he’s bearish on Facebook’s IPO. Watch and find out why you might want to hold back some irrational exuberance when $FB shares debut.
Source: soupsoup
Facebook’s revenue
DEVELOPING: According to IFR, a sister publication of Reuters, the social networking website Facebook will file for an initial public offering of $5 billion on Wednesday.
Source: reuters
Sean Parker at Davos Economic Forum 2012
Goldman Invests in Facebook at $50 Billion Valuation - NYTimes.com
Goldman Sachs has reached out to its wealthy private clients, offering them a chance to invest in Facebook, the hot social networking giant that is considering a possible public offering in 2012, according to people familiar with the matter.
Zynga won on Facebook with the business equivalent of blitzing on every play…My understanding is that margins are razor thin and buying traffic is a requirement, especially for continuing the growth curve. Losing 30% of revenue to the Facebook credits tax [would instantly destroy the economics of their finely tuned direct marketing math equations].
Source: jonathanmarcus
eBay noted that Paypal represents 50% of total payments on Facebook, and by the end of ‘09, gaming company Zynga was the 2nd largest Paypal merchant after eBay. Paypal had $500MM in virtual goods revenue in ‘09, which was 2x from ‘08, and we believe this could grow by 50% in ‘10.
