Facebook turns down $750M acquisition offer

[Dominic]

what exactly is facebook, and how do they generate revenue to make it worth a billion dollars??

[Tron]

[ QUOTE ]
what exactly is facebook, and how do they generate revenue to make it worth a billion dollars??

[/ QUOTE ]

It is a networking site for college students, where they can post their picture, some biographical information, join groups, communicate with each other, etc.

It is estimated that 85% of the students at schools where facebook is available are members, and of that 85%, approximately 60% log in on a daily basis.

Here is the tremendously large lists of colleges that are supported.

They make money in two ways. The first is that users can post bulletins, which cost $5 for 10,000 views. The second is that corporate sponsors have banner ads and some sponsored groups.

Facebook is worth a billion dollars because it is more or less ingrained in current college life. "facebook" has become a verb around college campuses much in the sameway that Google or Xerox have.

[Yeti]

Someeone post the 'thanks for the $$$, emo suckers' picture of Tom. It never fails to make me laugh.

[Shilly]

[ QUOTE ]
Someeone post the 'thanks for the $$$, emo suckers' picture of Tom. It never fails to make me laugh.

[/ QUOTE ]

[Dominic]

[ QUOTE ]
[ QUOTE ]
what exactly is facebook, and how do they generate revenue to make it worth a billion dollars??

[/ QUOTE ]

It is a networking site for college students, where they can post their picture, some biographical information, join groups, communicate with each other, etc.

It is estimated that 85% of the students at schools where facebook is available are members, and of that 85%, approximately 60% log in on a daily basis.

Here is the tremendously large lists of colleges that are supported.

They make money in two ways. The first is that users can post bulletins, which cost $5 for 10,000 views. The second is that corporate sponsors have banner ads and some sponsored groups.

Facebook is worth a billion dollars because it is more or less ingrained in current college life. "facebook" has become a verb around college campuses much in the sameway that Google or Xerox have.

[/ QUOTE ]

thanks. and i thought i was still cool because i actually knew what MySpace was.

jesus, i'm old.

[DCopper04]

[El Diablo]

goofy,

"I think if anyone here could definitively answer that they wouldn't be playing much poker anymore."

That's incorrect. It's pretty easy to answer this question after the fact.

[El Diablo]

man,

"there's little chance that some unforseen event will destroy the value of the company"

That is incorrect. Three years ago Friendster was the market leader by a huge margin. Google made a nice offer to buy them (that at current stock value would be worth hundreds of millions) that was turned down. Recent rumors have investors taking a majority stake of Friendster for $5m.

[El Diablo]

Dom,

"what exactly is facebook, and how do they generate revenue to make it worth a billion dollars?? "

Revenues don't make the company worth anywhere even close to the ballpark of a billion dollars. It's page views, market share, and estimated future opportunity that the company is valued on.

[El Diablo]

man,

BTW, on what basis do you say this?

"Unlike the tech boom in the late 90s, the market isn't irrationally overvalued"

Just about every investment banker and venture capitalist I know believes this space is currently irrationally overvalued exactly the same way as in the dot-com boom.