

Facebook value drops $11.25bn - babul
http://www.theregister.co.uk/2008/07/08/facebook_valuation/

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fallentimes
You're worth whatever someone will pay for you. If no one will buy you, you're
worth discounted future cash flows.

Edit: I like volida's methodology better.

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mdasen
I would argue that Facebook's value hasn't dropped - it just never was that
$15bn. Microsoft was paying for an ad contract along with the ownership share.
So, it was probably always valued at what is now becoming the quoted value.

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brandonkm
I think that slowly facebook's value will drop as they continue to rely on
their high valuation without making significant revenue.

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vaksel
The sad part, is that thanks to the market crash its still worth as much as
the entire General Motors, You know general motors with its tens of thousands
of employees, dozens of plants that are worth billions of dollars, 100% name
recognition, worldwide market penetration, etc etc.

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karzeem
Tidbit along the same lines from the article below: the combined market cap of
American, United, Delta, Continental, Northwest, and US Airways is $5.7
billion.

[http://www.wired.com/cars/futuretransport/news/2008/07/portf...](http://www.wired.com/cars/futuretransport/news/2008/07/portfolio_0708)

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ryanb
The figure at which Facebook values itself internally doesn't matter.
Determing Facebook's true value, based on its potential, is impossible.

PB on the potential of Facebook's data set:

[http://paulbuchheit.blogspot.com/2008/04/facebook-knows-
who-...](http://paulbuchheit.blogspot.com/2008/04/facebook-knows-who-you-are-
and-thats.html)

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volida
reality=market value/num_of_competitors; potential=reality/hope;

bubble=d(value)/d(time);

if (potential <= bubble) bubbleburst();

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omouse
We can't understand that. It doesn't look like Arc, or any other Lisp!

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pchristensen
Facebook's _perceived_ value drops $11.25bn.

