Facebook made $150m but is worth $15b?

C

CasperCRF

Can some one explain how they come up with Facebook being worth $15 billion when it only made $150 million last year?

"A Microsoft investment has valued the company at $15 billion. "

"Even though Facebook is seen as the embodiment of Web 2.0, it has the quintessential Web 1.0 problem: No one has figured out how to make real money off it. Facebook pulled in revenues of just $150 million in 2007. "

http://money.cnn.com/2008/04/11/tec...berg.fortune/index.htm?postversion=2008041117
 
um... facebook isnt worth close to 15bil... MS didn't value facebook at that value, they valued making obstructions for google's continued dominance at that value. There is a very good reason why MS bought a tiny 2.5% share and not a majority share or complete takeover... You will not find another buyer at that price.
 
does any of you have facebook if yes say "yes"

i'll start i do

i believe it is valued that much because of its potential for advertisements there is no way they are making that much of gifts...
 
the revenue is from advertising....not gifts.

btw....a big chunk of that rev came from, non other then mr. softie in a guaranteed ad deal.


the valuation is simply an extrapolation from msfts' investment stake. they gave about 240M to facebook and in return got a 1.5%$ equity stake.

the true value, is much, much less.
 
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