Facebook Rejects Funding At $4B Valuation
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Read the 1st paragraph where it says MYSPACE dominating the web, and look where they are today, facebook will in the same exact position most likey over the next 2-3 years, as for the next GOOGLE...
HAHAHAHAHAHAHAHAHAH
Facebook poised to become the next Google
Developments make Facebook even more important in your social life
By Sol Tran
Issue date: 4/16/09 Section: Scene
Originally published: 4/16/09 at 12:43 AM PST
Last update: 4/16/09 at 12:50 AM PST
If we rewind back to the end of 2007, MySpace was dominating the Web with well over 100 million active users, while Facebook barely crept over 10 million.
Those days are gone. Finished. Kaput. With a cleaner interface, more global outreach and more talented executives, Facebook has proven that it is the more powerful force.
Facebook has now grown to over 200 million active users, with over 100 million people logging in every day.
There's a big elephant in the room and a scary proposition, however, that likely plagues the mind of Mark Zuckerberg, Facebook's 24-year-old CEO: the possibility of Facebook being overtaken in the same way it surpassed MySpace.
But Zuckerberg seems to have a sound strategy to avoid that dreadful scenario: dominate the Web with no limits on any demographic -- except little kids.
Nick Kurns, program manager of Santa Clara's Center of Innovation and Entrepreneurship and a close follower of Facebook, attributes Facebook's strong growth to their leave-no-demographic-behind strategy.
"People look to Facebook hoping that they will be the darling of the recession with good reason -- they are the clear leader in social networking," said Kurns. "They've effectively opened new markets by introducing new demographics to social networking, and their growth rate has been very impressive."
A big reason for Facebook's growth has been its introduction to new demographics. It took four years for the Internet to reach 50 million users. Facebook just added 50 million new active users since the beginning of this year. The reason: Translated in over 40 languages, over 70 percent of Facebook users are from outside of the United States. Although social networking is thought to be targeted toward the young demographic, the fastest growing Facebook demographic is actually the 35 and older group.
In addition, with the launch of their new service, Facebook Connect, Facebook has great potential to really disseminate itself throughout the Internet, one Web site at a time.
The service allows users to bring their Facebook identity with them to other sites, such as Yelp.com or SCULife.com, and share information from those sites with their Facebook friends.
Senior Conrad Egusa, founder of SCULife.com, explains it succinctly: "Facebook is transforming the Web. People who want to create an account at SCULife.com don't have to create a new login, they just click 'connect' and they automatically log into our site with their Facebook account," he said. "Imagine posting your textbook on our Textbook Swap page and having that show up on your Facebook News Feed. Facebook Connect is really interconnecting the Web."
By ingraining Facebook into every aspect of our lives on the Internet, Facebook is poised to become the next Silicon Valley behemoth and could very well become a big competitor with Google.
It might already be happening. Both Facebook and Google have talked about acquiring the media darling that is Twitter.
Facebook also has the talent to compete with Google. By luring former executives from Amazon, EBay, Google, Mozilla and AOL, Facebook has developed a breadth of expertise that allows them to tower over the Web.
Many skeptics out there think Facebook is just a fad. "You never know, some genius person from Harvard could come up with an idea (to topple Facebook)," said junior Kanani Sk.
Just one thing: Zuckerberg happens to be a genius person from Harvard.
Yet there is one big question mark with Facebook: While Google has been making billions of dollars, Facebook has yet to cash in financially from all their traffic.
They have run through two or three CFOs now with no success. They are actually seeking additional funds, having burned through $200 million. Internally, they only value their company at $3.7 billion, far less than the $15 billion figure that has been thrown around.
"They seem to be grasping at straws, looking for anything that hints at a business model," said Kurns. "With the lousy capital markets and the lack of a revenue model, Facebook will be tested within the year. But taking a longer view, Facebook is an extraordinarily promising company. I think they will continue to lead among social networkings Ã_-- a hugely important industry -- that they will survive downturn and emerge as a Silicon Valley mainstay."
Facebook might not be cashing in yet, but by spending the money now to lay down the infrastructure, when 2011 rolls along, there is a strong chance that Facebook will be the new Google.
HAHAHAHAHAHAHAHAHAH
Facebook poised to become the next Google
Developments make Facebook even more important in your social life
By Sol Tran
Issue date: 4/16/09 Section: Scene
Originally published: 4/16/09 at 12:43 AM PST
Last update: 4/16/09 at 12:50 AM PST
If we rewind back to the end of 2007, MySpace was dominating the Web with well over 100 million active users, while Facebook barely crept over 10 million.
Those days are gone. Finished. Kaput. With a cleaner interface, more global outreach and more talented executives, Facebook has proven that it is the more powerful force.
Facebook has now grown to over 200 million active users, with over 100 million people logging in every day.
There's a big elephant in the room and a scary proposition, however, that likely plagues the mind of Mark Zuckerberg, Facebook's 24-year-old CEO: the possibility of Facebook being overtaken in the same way it surpassed MySpace.
But Zuckerberg seems to have a sound strategy to avoid that dreadful scenario: dominate the Web with no limits on any demographic -- except little kids.
Nick Kurns, program manager of Santa Clara's Center of Innovation and Entrepreneurship and a close follower of Facebook, attributes Facebook's strong growth to their leave-no-demographic-behind strategy.
"People look to Facebook hoping that they will be the darling of the recession with good reason -- they are the clear leader in social networking," said Kurns. "They've effectively opened new markets by introducing new demographics to social networking, and their growth rate has been very impressive."
A big reason for Facebook's growth has been its introduction to new demographics. It took four years for the Internet to reach 50 million users. Facebook just added 50 million new active users since the beginning of this year. The reason: Translated in over 40 languages, over 70 percent of Facebook users are from outside of the United States. Although social networking is thought to be targeted toward the young demographic, the fastest growing Facebook demographic is actually the 35 and older group.
In addition, with the launch of their new service, Facebook Connect, Facebook has great potential to really disseminate itself throughout the Internet, one Web site at a time.
The service allows users to bring their Facebook identity with them to other sites, such as Yelp.com or SCULife.com, and share information from those sites with their Facebook friends.
Senior Conrad Egusa, founder of SCULife.com, explains it succinctly: "Facebook is transforming the Web. People who want to create an account at SCULife.com don't have to create a new login, they just click 'connect' and they automatically log into our site with their Facebook account," he said. "Imagine posting your textbook on our Textbook Swap page and having that show up on your Facebook News Feed. Facebook Connect is really interconnecting the Web."
By ingraining Facebook into every aspect of our lives on the Internet, Facebook is poised to become the next Silicon Valley behemoth and could very well become a big competitor with Google.
It might already be happening. Both Facebook and Google have talked about acquiring the media darling that is Twitter.
Facebook also has the talent to compete with Google. By luring former executives from Amazon, EBay, Google, Mozilla and AOL, Facebook has developed a breadth of expertise that allows them to tower over the Web.
Many skeptics out there think Facebook is just a fad. "You never know, some genius person from Harvard could come up with an idea (to topple Facebook)," said junior Kanani Sk.
Just one thing: Zuckerberg happens to be a genius person from Harvard.
Yet there is one big question mark with Facebook: While Google has been making billions of dollars, Facebook has yet to cash in financially from all their traffic.
They have run through two or three CFOs now with no success. They are actually seeking additional funds, having burned through $200 million. Internally, they only value their company at $3.7 billion, far less than the $15 billion figure that has been thrown around.
"They seem to be grasping at straws, looking for anything that hints at a business model," said Kurns. "With the lousy capital markets and the lack of a revenue model, Facebook will be tested within the year. But taking a longer view, Facebook is an extraordinarily promising company. I think they will continue to lead among social networkings Ã_-- a hugely important industry -- that they will survive downturn and emerge as a Silicon Valley mainstay."
Facebook might not be cashing in yet, but by spending the money now to lay down the infrastructure, when 2011 rolls along, there is a strong chance that Facebook will be the new Google.
Huh.. Interesting turn of events:
MySpace co-founder DeWolfe to step down
http://finance.yahoo.com/news/MySpa...06117.html?sec=topStories&pos=2&asset=&ccode=
MySpace co-founder DeWolfe to step down
http://finance.yahoo.com/news/MySpa...06117.html?sec=topStories&pos=2&asset=&ccode=
yeah, and when you were 9, 21 yr olds were spending copious amounts of time in random yahoo chat rooms and building their geocities pages.
this ginger daywalker and his board should counter 4.4B and take whatever they come back with and file for an IPO post haste; selling some of his shares in the offering to 'diversify'. then, hope the fuck it still has value when his lockup is over. btw, you all are missing what's going on here. this isn't him selling the company- they're jsut doing another series raise (it says nothing about founder shares). they got term sheets valuing at 2b and 4b, so FB let some reporters know they'd take a TS based upon a post money valuation of closer to $5b. if they raise $, i bet it will be @ around 4.2-4.5b post.
all this is about is how much dilution there will be for current equity holders.
Its not a dot com company though.
I'm in league personally with the guy who said they tried it, thought it was cool to talk to people you haven't in 10 years then realized why you haven't talked in 10 years.
However there are always going to be millions of kids starting highschool and college around the world and that amount of eyeballs at that age is pretty lucrative. They have already won that battle, I don't care if someone gave you 10 billion, you wouldn't be able to make a dent with a new website. Its like with search engine, you start with a ton, then you eventually get yahoo and google...that doesn't mean someone else can come up with a new google/yahoo now.
beating a dead horse, but... you could say the EXACT same thing about myspace a few short years ago. now, if you're active on myspace and over the age of 13, you're either an out of touch loser, a sexual predator, or msnbc trying to catch sexual predators! being active on facebook becomes real old, real quick- well, unless you're a stalker. youtube will be able to monetize eyeballs easier than FB, fb and myspace are like bad dating- a bunch of people trying to sound more interesting than they are and trying to connect with/accumulate 'friends' who are, in reality, not your friends.
Zuckerberg is er...a Zucker based on this valuation.
Does FB have value? Certainly, and now with unemployment skyrocketing there will be a lot more activity on those boards.
Does FB have 4 Billion worth of value?
Absolutely not.
Don't be a dick for a tick, Zucker, lifecycle of online interactive concepts is decreasing dramatically, the next best thing is around the corner and by the time you realize it, it'll be too late.
Better cash in and use that funding to scout for the next home run.
BI
