Facebook: How Will It Justify Its $15 Billion Worth?
| Internet & Gaming | January 8 | No Comments
Note: This post was written as a response and commentary to Mazyar’s post on minds1anda.com. Since then his post and opinions have been modified. I will not be re-modifying this article to reflect those changes. I might make another response post, though. Facebook had a very good 2007. It closed a 240 million dollar equity deal to boost its value to $15 Billion, it had perhaps the greatest innovation of the year with Facebook applications (more on that in a bit), and it even nearly became the word of the year (w00t? Come on). This hasn’t quieted the critics, however. It came under assault for Beacon, its advertising program that places what you do on outside websites onto news feed (for example, I have one friend who keeps adding recipes to epicurious.com and it keeps showing up on my news feed). It has also been criticized by some experts who believe that Facebook is overvalued. Even Bruce Jaffe, Microsoft’s VP of Corporate Development, said that it “paid a premium” with its investment in Facebook. Let’s get to the meat of the issue, shall we? Is Facebook worth $15 billion now and what should Facebook do to validate that valuation? My dear friend Mazyar Kazerooni, Mind 1 of minds1anda.com wrote about this very subject in a recent post. For those of you who have not already basked in the glow of his post, here’s a summary of his recommendations: Right now, Facebook earns between $100 million and $250 million, nearly all of it on advertising revenue. They are a private company, so we can only speculate. Peter Thiel, Paypal co-founder, venture capitalist and Facebook’s most prominent investor, stated that Facebook’s internal financial models predict a $1 Billion revenue stream by 2015. I believe that projection is too low. It has more potential than that by 2015. Perhaps they’re trying to be conservative to shatter expectations. In any case, Mazy’s two recommendations on advertising are, in my opinion, steps in that direction. Facebook has two important pieces in the financial puzzle: information and eyeballs. But they cannot rely on advertising on the Facebook platform alone to act as the revenue stream of the company. And I doubt that it will stay that way for very long.






Unsatisfied with traditional reviews, normally uninformative hype or bash pieces followed by a number, I am attempting a truly informative game review. My goal is to cut through the hype and tell you exactly what to expect from a game. If I’ve done my job, you can even talk about a game as if you played it yourself! This gives you a strong impression of how much you would enjoy it. Without further explanation, let’s get on to the review!
Now that Super Mario Galaxy has achieved the title of the second best reviewed game of all time according to