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Has Facebook's Value Plunged from $15B to Just $500M?

Posted Jan 06, 2009 10:30am EST by Sarah Lacy in Investing, Internet, Media, Venture Capital, M and A, IPOs

There's no question, private company valuations are falling along with their publicly traded brethren. And Web 2.0 darling Facebook isn't immune. We all know it's not worth that posh $15 billion valuation Microsoft bestowed on it back in 2007. But how low has it fallen?

My guest blogger and investor Paul Kedrosky thinks it's under $1 billion, and I think he's mental. Watch the clip and pick a side! Also, if Facebook decides the ad market it too rocky to go it alone, who's the most likely buyer?

Click "more" to embed this video.

96 Comments

__A_YAHOO_USER__
__A_YAHOO_USER__ - Tuesday January 06, 2009 10:46AM EST

That is bottom from 15 Billion dollar to 500 million dollar.....A real bottom.....

blank
blank - Tuesday January 06, 2009 10:49AM EST

its still worth a billion or 2 or 3 but no where near $15 billion never happen the kid is more lucky than as smart as anyone hyped him up to be

blank
blank - Tuesday January 06, 2009 10:49AM EST

its still worth a billion or 2 or 3 but no where near $15 billion never happen the kid is more lucky than as smart as anyone hyped him up to be

Yahoo! Finance User
Yahoo! Finance User - Tuesday January 06, 2009 10:50AM EST

Why is poor Paul Kedrosky always have to talk to Sarah Lacy. When are they going to bump him to the A-List on TechTicker where he gets to speak with Aaron...

Mike
Mike - Tuesday January 06, 2009 10:53AM EST

There is always value for the permission marketers to leverage this social network. The era is ending... the value here is driven by advertising - and that money is gone.

abcyesn
abcyesn - Tuesday January 06, 2009 10:54AM EST

I have to agree with Paul Kedrosky, facebook is a nice social platform, it's unique in a way, there's no doubt about that, but it's pretty hard to make money as most users hates banner ads displaying all over the place. At a certain point, people would say enough is enough, and they will jump ship to another social networking site. (A lot of other social networking sites are trying to copy their technology as well as their strategies.) Facebook has very little success trying to copy google adwords technology because a social networking site is not made like a search engine. I think facebook should focus more on the corporate ads side rather than individual ads like adwords.

Dan
Dan - Tuesday January 06, 2009 10:55AM EST

Sara Lacy is hot!!!!!!

__A_YAHOO_USER__
__A_YAHOO_USER__ - Tuesday January 06, 2009 10:58AM EST

$15 billion book value fall to $500 million book value....As long as it is a good comapny good balance sheet, good income and good net profit after tax....Well I call it....Bottom...it reach the bottom.....In that case good buying opportunity.....Buy.......

zorro
zorro - Tuesday January 06, 2009 11:13AM EST

Sarah, i think you're mental to think that another one of these web 2.0 dotcom come again websites is going to be the next google. Lets see a profit first, and real commercial value, and then we'll talk about even a sustainable valuation above $1b. I think Jeff is absolutely on the money on this one. Facebook's a nice to have, but if it starts pushing ads to much on its platform, people will leave in droves. Oh by the way, Microsoft's pretty mental as well to invest at a $15b valuation... hahahahahaha... what a load of crock. and no, Sarah... YOU'RE insane

giraffes
giraffes - Tuesday January 06, 2009 11:19AM EST

Wow I find her annoying .. Does she ever stop grinning?

Yahoo! Finance User
Yahoo! Finance User - Tuesday January 06, 2009 11:19AM EST

Looks like Sara is somewhat biased towards FaceBook (Must be all that hanging out with Zuck.. all the time). FaceBook has lost some of it glitz and most users including myself use it only to share/view photos.

giraffes
giraffes - Tuesday January 06, 2009 11:20AM EST

Wow I find her annoying .. Does she ever stop grinning?

Yahoo! Finance User
Yahoo! Finance User - Tuesday January 06, 2009 11:20AM EST

Looks like Sara is somewhat biased towards FaceBook (Must be all that hanging out with Zuck.. all the time). FaceBook has lost some of it glitz and most users including myself use it only to share/view photos.

Paul
Paul - Tuesday January 06, 2009 11:27AM EST

Baccala says "woof".

luckygator
luckygator - Tuesday January 06, 2009 11:28AM EST

Who is the expert here? Nevertheless, if noone is selling it now who cares what the value is and if they do decide to go public and the bear market ends this would be a HUGE ipo and the big interest in this stock alone will drive the value up regardless of earning. Whether this will be a good longterm investment will depend on what the owner can do with it to make $$$. Therefore, eventually the stock will go up if earning go up and that is what should really matter to anyone buying or selling.

Ray
Ray - Tuesday January 06, 2009 11:43AM EST

Paul with a Commodore's cap would answer the question "whatever happened to the Captain from "The Captain and Tenille?"

blank
blank - Tuesday January 06, 2009 11:45AM EST

come on lucy facebook is a mature company now

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blank - Tuesday January 06, 2009 11:47AM EST

microsoft bought the right to put the advertising on facebook -- but that didnt work out. maybe $1 billion MAX !!!!!!!

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blank - Tuesday January 06, 2009 11:48AM EST

wake up people. nobody clicks on the ads. not worth anything. just losses for the next 10 years

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blank - Tuesday January 06, 2009 11:49AM EST

facebook will prove to be the most hyped company ever --- with the lowest profit ever --- its just not a business --- now or 5 years from now --- kids dont click on the ads and they wont --- did email every make money? NO. it wasnt a business either.

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