No way is Facebook worth $8bn
Facebook is said to have turned down a confirmed $1bn bid this year, and came back with a very bullish statement that it was worth $8bn. I just find that hard to believe. The research that I did suggest that UGC and SN sites can get somewhere around, on average, $21.36 per registered user. OK, some get more, and some get less
- Youtube went for $47.14/registered user
- MySpace went for $5.18 a few years earlier
- Friends Reunited went at $20 dead
- and Bebo reportedly turned down an which equated to $25/head)
but Facebook is way out of the ballpark, here are the numbers…
Looking at it another way, assuming that Facebook has an extremely healthy profit margin of 24% (like Google for example), the company would have earned about $12 million in profit for the year. At that rate, Facebook is valued at 666 times its current earnings. … Facebook, was last estimated to have around 9 million users, so at that valuation, it would be worth a measly $52.2 million! At a $1 billion valuation, Facebook was looking for $111 per user. At $8 billion…well you can figure it out.
This is from David COlemans blog