Facebook worth 9 Billion Dollars?

Posted by Marshall Sponder on April 28, 2008 | Link It

Would you pay 9 billion dollars for Facebook?  Yes/No?   Actually, that's what Henry Blodget thinks Facebook is really worth – I read about the 9 billion Facebook valuation a TechCrunch post titled Blodget Says Facebook Is Only Worth $9 Billion, Hypothetically Speaking

 "….Today, Henry Blodget & Co. at Silicon Alley Insider try to peg valuations on 25 private Web companies. Facebook is at the top of the list, but it is valued at $9 billion instead of the $15 billion that Microsoft’s investment put on the company. Why? Because everyone knows that the $15 billion is too high, so SAI decided to apply a 25X multiple on Facebook’s 2008 revenue forecast of $350 million. Does that make its valuation correct? Probably not. But in the absence of any true market pricing, anyone can go ahead and make a guess."

I think that sounds right – 15 billion for Facebook sounds too high – not that Facebook isn't worth 15 billion – but who'd pay that much for it? 







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