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Facebook Valuation – Food For Thought

02/16/2011

If Pandora’s IPO valuation is 10x revenue on $120 million = $1.2 billion valuation. – Link

Then Facebook revenue at $1.9 billion = $20 billion valuation. – Link

Facebook tops Amazon’s valuation. Mmmm….$83 billion…that number seems funky. – Link

Kleiner Perkins just valued Facebook at $52 billion. – WSJ

For the record, I would not pay 25x revenue for any business, no matter how hot it is.

That’s not how the Oracle of Omaha made his long term billions either.

An associate of mine worked at AOL during it’s rise to power. Take a look at this chart. You guys remember AOL purchased Time Warner….it wasn’t the other way around. And we all know how that turned out – Link

AOL Subscriber Chart

I am starting to get a certain Jimmy Cliff song running through my head – Link

Or maybe this Jimmy Cliff song is more appropriate for Facebook’s upcoming IPO timing – Link

Many rivers to cross in this marketplace.

Would you pay over 25x revenue for Facebook?

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