And The Bubble Rolls On... Facebook Wants $2 Billion
from the blowing-money-flavored-big-league-chew dept
Business Week's acting like it's got a scoop that social-networking site Facebook is holding out to sell for $2 billion. Facebook's been in play for a while, though, and apparently people are having a hard time justifying the valuation and figuring out exactly why they should buy the company. Does this sound familiar? It's exactly what happened with Skype. A company with unknown financials -- but huge buzz, a hard-to-quantify metric -- starts getting talked about in a faux bidding war through the press, with a price tag of $1 billion, then $3 billion, then ends up selling for as much as $4.1 billion despite legal uncertainties and the lack of an apparent, cohesive strategy. Facebook's social-networking cohort Myspace sold for $580 million, despite questions about its real value, and it gets roughly four times the monthly page views of Facebook. Still, it wouldn't be surprising to see somebody dump the $2 billion for Facebook because they don't know any better, don't understand it and because they're afraid of missing out on this whole social-networking thing, even though the signs are gathering that these sites are little more than fads.