First of all, yesterday, the 1.6% Facebook acquisition by Microsoft and therefor $15B valuation was the worst marketing stunt maneuver that I remember. Celso thinks that this is the beginning of the 1996-2000 bubble, but I don't think that the Venture Capitalists will fall for that again.
Nevertheless where's that I've saw: - Facebook was short on money and they want to expand their team (from 300 to 700 in 2009) - They'll achieve break-even only this year, after 3 years on red - This year they've signed with Microsoft an exclusive AD deal - Microsoft is and will be their only AD client until 2011 - Reports say that the break-even will be achieved on $150M, so I suppose that a large sum comes from MSFT cash ads cow, if not all of it - MSFT bought a 1.6% for $240M, which will be added to the $150M already paid this year and will pay on a regular basis, unknown large (or not) amounts of money for the ADs deal until 2011 - Facebook is half the size of MySpace and 10 times its valuation; quite spectacular and awkward - Google wanted Facebook for its users and demographics and MSFT wanted for ADs and the war ground was clearly on the AD and not on user data, just to hurt Google Bottom line: with this speculative stunt, MSFT valuated Facebook 100 times, but Facebook's running on air, with more promise than profit, also, with this defensive strategic, MSFT has putted Facebook too high for Google's buying or for MSFT itself. Honestly, for Facebook, this could be a huge nail on their coffin, since they are on MSFT hands until 2011. -- //VD _______________________________________________ tce mailing list [email protected] http://lists.paradigma.pt/mailman/listinfo/tce
