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Is Facebook Worth $10 Billion?

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The latest rumors being reported that Microsoft might invest a 5 percent stake in Facebook worth up to $500 million that would give the social networking site a valuation of $10 billion the question becomes is Facebook really worth that much money?


 Is Facebook Worth $10 Billion?
Is Facebook Worth $10 Billion?

Facebook founder Mark Zuckerberg has done well in growing the site and the company expects this year to have a profit of $30 million on revenue of $150 million. Still that being said is Facebook really worth $10 billion?

Over at All Things Digital,  Kara Swisher writes," But in comparative terms to the search giant, Facebook is a lemonade stand. Google brought in $3.9 billion in revenue in just the second quarter alone and, um, is increasing its dominance over the search sector in a mighty scary way."

"Facebook, on the other hand, gets half its annual revenue right now from a sweetheart guaranteed revenue deal with, drum roll, Microsoft. No matter what either Facebook or Microsoft says, it is a money-losing deal for Microsoft so far."

A Neilsen//Netratings report revealed that MySpace beats Facebook in time spent among visitors between the ages of 12-17. Dual visitors to the sites spent an average of 398 minutes on MySpace and 93 minutes on Facebook. Exclusive visitors to MySpace spent an average of 331 minutes on MySpace and 74 minutes on Facebook. Facebook does have around 40 million active users and does not include padded numbers like MySpace, which says it has 100 million accounts although not all of them are active.

Facebook has a ways to go if it wants to be considered worth $10 billion. Right now I just don’t see it.

Is Facebook Worth $10 Billion?
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  • Eliese

    I agree that Facebook may not necessarily be worth that much money…I mean come on…what is?…however those facts on user use with Facebook and Myspace does not factor in the fact that people go onto Myspace to listen to music. I know plenty of people that sign up for myspace just to listen to music and see pictures. Ever since facebook came out, facebook has been considered to be “safer” “easier” to keep in touch with people, mor reliable, and more organized.I am not saying that myspace is better or worse than facebook, but I’m sure that Microsoft sees a lot more potential with facebook.

  • Guest

    second that. myspace is great for music, but i hope that sooner or later something like hypemachine will develop and render myspace obsolite, as i get motion sickness navigating the site

  • http://www.fashion-in-bag.com Replica Designer Handbags

    I don’t think so.

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