So apparently Microsoft is in talks with Facebook to possibly buy a 5% stake in Facebook that would value the company at $10 billion. Read that again – yes, $10 billion. Google has expressed interest as well. Give me a break. Bubble bobble..
Wall Street Journal: Microsoft Is in Talks To Buy Facebook Stake
Yahoo scoffed at buying Facebook for $1 billion and they were right to do so. Since Facebook is a private company it doesn’t disclose it’s revenue publicly but it was understood at the time that $1 billion was a rather large multiple of Facebook’s annual revenue. You can factor in things like their large growing user base, brand equity, and general mind share in the social networking space but how long can those things last? Can Facebook’s popularity be sustained long enough that it would actually earn a positive return for whoever invests in or buys the company at such a high valuation? I don’t think so but what do I know. I do think Facebook needs to cash in soon before the… *cough*bubble*cough* … pops.
Anyway, I’ve been really busy with work over the last 2 weeks; not much else going on at the moment. Not much time to blog.