Japanese Car Zone - View Single Post - Facebook a $10 billion company? Anyone use it?

450SEL6.9 · 09-25-2007, 11:27 AM

Great link, bmer. Thanks.

So from the article, at a $5b FB valuation, myspace would be worth $12b. At $10b for FB, myspace is worth $24 billion. Myspace's parent company, News Corp, has a market value of $75 billion. According to these crazy valuations, their myspace unit (which cost $580m in 2005) could account for 33% of the world's largest media empire's market cap. Does that not seem absolutely absurd? But then again American mortgage lenders granting mortgages to people without checking their income is equally absurd.

If FB gets to a $10b valuation (and it probably will), we're looking at 2000 internet stock bubble all over again. With the mortgage mess in America, the last thing it needs is another bubble. The article says the bidders don't care about price. I don't know why I read that line so much today. They better start caring about price because the goal of business is to make a profit. You don't make profits when you overpay. I think the American economy is setting itself up for a mighty, mighty fall, but most economists are too blind or conflicted in their interests to see it.

09-25-2007, 11:27 AM	#9
450SEL6.9 Inactive Account Join Date: Oct 2005 Posts: 1,142 Thanks: 172 Thanked 108 Times in 95 Posts	Re: Facebook a $10 billion company? Anyone use it? Great link, bmer. Thanks. So from the article, at a $5b FB valuation, myspace would be worth $12b. At $10b for FB, myspace is worth $24 billion. Myspace's parent company, News Corp, has a market value of $75 billion. According to these crazy valuations, their myspace unit (which cost $580m in 2005) could account for 33% of the world's largest media empire's market cap. Does that not seem absolutely absurd? But then again American mortgage lenders granting mortgages to people without checking their income is equally absurd. If FB gets to a $10b valuation (and it probably will), we're looking at 2000 internet stock bubble all over again. With the mortgage mess in America, the last thing it needs is another bubble. The article says the bidders don't care about price. I don't know why I read that line so much today. They better start caring about price because the goal of business is to make a profit. You don't make profits when you overpay. I think the American economy is setting itself up for a mighty, mighty fall, but most economists are too blind or conflicted in their interests to see it. Last edited by 450SEL6.9; 09-25-2007 at 02:32 PM..