20060328
Facebook for $2 Billion?

Rafat Ali follows up:
The non-story about college social networking site Facebook's being on the block, which it has been for a while and everyone, including Viacom, has looked at it multiple times, parsed the valuation and options, and still could not think of a logical business reason for ponying up that kind of money.
What I do know, from my sources, is that Facebook closed on a "huge round" of funding last week. So I would say the acquisition part is off the table, for now. BW's $2 billion figure is at best, hearsay, and at worst, media manipulation.

So does Valleywag:
BusinessWeek writer Steve Rosenbush is the latest sipper of the Facebook Kool-Aid, putting a positive spin on its "sell for $2 billion" plan in his latest article. (Tuesday morning drinking game: take a shot every time he follows a doubt with a "but" -- as in, "Facebook doesn't match the scale of MySpace, but...")

My sources tell me that the latest round of financing was closed on a valuation of $2 Billion -- so that's where the number comes from.
Posted at 11:29 AM.
2 Comments:

Scott Kidder said...
You know, I would think that Connected Ventures is significantly more profitable than Facebook...
7:05 PM
 


Brian Balfour said...
While I definitely don't think the site is worth $2 billion, I wouldn't be surprised to see some stupid media company buy it for around $1.5. I wrote a little more about it on my blog as well.
8:19 PM
 


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Hi, I'm Zach. I grew up in Fort Wayne, Indiana and graduated from Wake Forest. After college, I moved to Manhattan to get serious about a company I ran with friends. We sold it to Barry Diller's InterActiveCorp in 2006. I just wrapped up with a project I co-founded called Vimeo and left CV to focus on being a twenty-five year old.

I have another blog called Copy and Taste, where I post about learning to cook.

I live in Brooklyn now.


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