Facebook Worth $10 Billion

Seriously, does FaceBook really worth US$10 Billion. That's a lot of money. Facebook is getting a $200 million investment from Digital Sky Technologies, a Russian Internet investor that values the social networking company at $10 billion even though it has yet to turn a profit.

The $10 billion valuation for FaceBook is less than the $15 billion value implied in 2007, when Microsoft spent $240 million for a 1.6 percent stake in the company _ even though FaceBook has substantially grown since then. Read also SEOMoz - The Definitive Reason Why Facebook is Worth at Least $15 Billion

However Facebook's own appraisal after the Microsoft deal gave the company a market value of about $3.7 billion, according to details revealed in a legal settlement. Based in London and Moscow, Digital Sky also holds a stake in vKontakte, a Russian online social network that is far more popular in that country than Facebook.

Most analysts do not believe that five-year-old Facebook has yet turned a profit due to the high volume of new usership and its apparent inability to monetize advertising on a social platform.

While not direct rivals in terms of social networking, big tech companies like Yahoo and Google rely heavily on advertising to make money.

On the last count, FaceBook membership has exceeded 150million users. Now, their member base has probably reached the 200million users mark. Assuming FaceBook value is really worth $10,000,000,000 and their users is 200,000,000 that would mean a user is generating about $50 on average. As for me, I have yet contribute a single dime to FaceBook.

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* CNN - Facebook scores $200 million



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