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What is Facebook Worth?

In facebook, internet, web 2.0, web analytics on July 22, 2008 by BostonTweet Tagged: , , , , , , , ,

According to Silicon Valley Insider there is yet another valuation of Facebook and this time it’s just above $6 billion.  With this latest transaction a couple of hedge funds purchased about a tenth of common stock from two or more employees at a valuation roughly around $6 billion.  

As the article states the correct valuation of Facebook will not be known until it goes public and the market can determine the price.  In my opinion this will likely be less than the $15 billion valuation that Microsoft placed on it and more likely in line with the $3 billion valuation that Techcrunch recently quoted.  

Back in June I computed Facebook’s revenue valuation at just under $1.4 billion using the Bizak Calculator.  If Facebook goes public the initial hype will value the company higher than their revenue valuation.  Over time revenues, not hype, will ultimately decide Facebook’s worth.

One Response to “What is Facebook Worth?”

  1. [...] search rights but they lost to Google.  As I’ve noted in a couple of previous articles, Facebook Worth & Facebook Revenues, Microsoft’s $15 billion valuation of Facebook is almost three times [...]

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