"Think that Goldman Sachs spent too much on Facebook with the $450 million investment? Well, a very wealthy customer of theirs decided to leak Facebook's financials yesterday after receiving it over lunch: '... during the first nine months of 2010, Facebook generated $1.2 billion in revenue. Net income at the firm was $355 million. The financial statements were not audited and offered little detail about how Facebook generates its revenue, said the source, who did not want to be identified because he had signed a non-disclosure agreement.' Expanding this nine-month period to a year yields $1.6 billion in revenue and under half a billion in income. Given that, should Facebook be valuated at $50 billion?"
The funny thing is the vast difference in the value estimate.
Slashdot reported a value of 50 billion. Where as
Weekly World News reports "Economists estimating its value at around 7.9 billion" That is a vast difference.
Regardless which one is closer to reality I can not see Facebook being tanked. Zuckerberg may wish to throw his hands up but I can't see Goldman Sachs coming to the same conclusion. There is just to much revenue to flush it.
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"Rectitude carried to excess hardens into stiffness; benevolence indulged beyond measure sinks into weakness."
Date Masamune
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