
Want Some Facebook Stock At A $3 Billion Valuation? We Know Who To Call. - rms
http://www.techcrunch.com/2008/06/28/want-some-facebook-stock-at-a-3-billion-valutation-we-know-who-to-call/
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rms
I'd buy at a $3B valuation...

Facebook is reasonably valued at $5B-$7.5B, right? And by reasonably I mean as
a strategic acquisition.

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aneesh
Nobody really knows what a reasonable valuation for facebook is. They've yet
to turn a profit, and it remains to be seen how well they can monetize all
those users. Plus, value is in the eyes of the investor: it was worth over $15
billion to Microsoft, but not even $3 billion to whoever is selling.

I say it's all just speculation right now, since their shares aren't very
liquid. And even if their shares were liquid, on what basis would you value
them?

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rms
In the next two years of Facebook, they could only be acquired as a strategic
investment, valued at $5-7B if a large player like Google/Microsoft/Yahoo
tries to buy them. Maybe a sovereign wealth fund? Unless those funds stay away
from Web 2.0.

Beyond that, yes, they'll have to show revenue. Facebook will be a good test
of the ultimate stability of the Web 2.0 Bubble. I think their best strategy
is to go into the mortgage market, but the consensus of this board seems to be
that Facebook won't succeed in the mortgage market.

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ctkrohn
I highly doubt a sovereign wealth fund would invest in Facebook. Most of their
recent equity investments have been in dividend-paying stocks of US banks;
they also tend to buy a lot of fixed income assets. Facebook won't be able to
pay dividends any time soon, and while I recall them doing a debt offering, I
can't imagine it's on the scale that would appeal to an SWF.

