There’s No Way Facebook Is Worth $13 billion

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A Russian Internet firm has invested $250 million in Facebook, giving the social networking company a value of almost $13 billion.

Digital Sky Technologies, which has invested in leading Russian web properties like Mail.ru and Vkontakte.ru, will take a nearly 2 percent stake in Facebook in exchange for preferred stock.

The new valuation is $6.4 billion lower than when Microsoft Corp invested $305 million in Facebook, in return for a 1.6 percent stake, in 2007.

ComScore reports that Facebook attracted 132.1 million unique visitors in June 2008 with a reported 200 million active users.

Even with such numbers I’m baffled at it’s value. How can they justify such a value compared with it’s generated revenue?

There are many sources across the net alleging Facebook shares user data with other companies – is that bringing in more dollars than banner advertising? Not that banner ads are going to make significant money anyway. And if it’s true, how much are those deals worth for companies to invest $250 million for a 2% stake?

Facebook worth $13 billion – you’re having a laugh.

Posted on May 27, 2009 | Filed Under Tech