FB valuation & IPO
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< amsika
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Attached are my thoughts on the Facebook S-1 along with some quick stabs at valuation.
Startups usually succeed because of a single major product or business innovation. Google is unusual in that they succeeded because of two major innovations: their core search product, and their keyword advertising business model. Back in 2000, when Google was wildly popular but generating no revenue, the conventional wisdom was that their business model was uncertain. Then Overture invented keyword advertising and Google adopted the same model. This turned out to be both wildly profitable and also, remarkably, created a better experience for both advertisers and users.
In the first six months of 2011 Facebook had $1.6 billion in revenue and about $800 million in operating income, says a source I trust a lot.
Facebook is preparing to launch its blockbuster initial public offering in the US towards the end of next year, a later public debut by the social networking site than had been widely anticipated, say people familiar with the company. The IPO, expected to be one of the world’s biggest with recent private share sales valuing Facebook at more than $66.5bn, has been expected by April 2012, with persistent speculation that it could even come this year. However, people close to the company have told the Financial Times that Mark Zuckerberg, Facebook’s chief executive, wants to wait until next September or later in order to keep employees focused on product developments rather than a pay-out.
Tony Avelar/Bloomberg News The deal could double the personal fortune of Mark Zuckerberg, Facebook’s co-founder.
I think I've read that if FACEBOOK were a country it would be the third most populous on the globe and presumably the wealthiest by far.
Facebook, early 2006 Sometimes, you need to be horribly, embarrassingly wrong to remind yourself to keep an open mind. This is my story of my failure to understand Facebook’s potential.