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Valley Buzz: Intel Kills CES Vibe, Facebook Gloating and Another Yahoo Bid?
Posted Jan 07, 2009 06:14pm EST by Sarah Lacy in Software and Services, Information Technology, Valley Buzz
Ok, let's get this ugly gloating out of the way first. Yesterday, Paul Kedrosky and I had a debate about Facebook's value and whether the company should sell in 2009. Kedrosky said it was worth a mere $500 million and had no business as a standalone company. I called him insane.
Like a white knight, Facebook CEO Mark Zuckerberg has swooped in with an announcement that the company now has a whopping 150 million registered users. And the growth is accelerating, with 20 million joining in the last month. More impressive is the fact that nearly half of them use the site every single day.
With a pile of cash, a balance sheet that's roughly break even and accelerating traffic growth even on such a large number, Facebook would be mad to sell in a depressed environment. After all, it's not like the ad market is never going to return.
Meanwhile, the Valley may be shuttling en masse to Las Vegas for the Consumer Electronics Show, but there's not a lot of excitement in the air after Intel's bomb this morning. The chipmaker warned that it expects to report a 20% drop in revenues for the fourth quarter, well below the already lowered previous guidance.
Sure, we were all expected a bloodbath Q4, but it doesn't make it any easier. Especially as Steve Ballmer readies to take the stage for the annual pre-CES keynote, historically delivered by Bill Gates. He's going to have to do a lot of jumping around and screaming to pump up that crowd.
And speaking of Microsoft, is it making another run at Yahoo? Michael Arrington of TechCrunch reports that a group of prominent Valley insiders are putting a deal together to buy Tech Ticker's parent for around $15 per share. The kicker? Since banks won't lend, the deal is to be financed by the bank of Microsoft. Our own Henry Blodget went ballistic on the idea, saying he for one wouldn't be tendering his shares for such a cheap price. Most likely, the deal won't come together but the chatter proves one of the biggest tech stories of 2008 isn't going away just because the calendar flipped to a new year.
19 Comments
Neil - Wednesday January 07, 2009 06:48PM EST
IM HAVING TROUBLE GETTING BARCLAYS BANKERS DRAFTS PAID. ANY ONE ELSE??
cetinh - Wednesday January 07, 2009 09:11PM EST
yay facebook 150 million users..yay record growth.. yay more eyeballs...yay record VC funding..I love bubbles..goog 800 yay lets keep buying $$$ woo hooooo
blank - Wednesday January 07, 2009 10:09PM EST
facebook has 1 billion users and not one of the are clicking on ads
John - Wednesday January 07, 2009 10:58PM EST
150 million users... that is quite impressive. thats half the population of the entire U.S. ( i know they are worldwide numbers but....). that is a powerful powerful site mark has. with that many eyeballs youd think more innovation would be happening there than what really is. facebook is a phenomena that i still don't think has reached its peek.
John - Wednesday January 07, 2009 10:59PM EST
150 million users... that is quite impressive. thats half the population of the entire U.S. ( i know they are worldwide numbers but....). that is a powerful powerful site mark has. with that many eyeballs youd think more innovation would be happening there than what really is. facebook is a phenomena that i still don't think has reached its peek.
Val - Thursday January 08, 2009 02:29AM EST
A balance sheet that's roughly break even???? Pick up and read Accounting for Dummies before writing another column
__A_YAHOO_USER__ - Thursday January 08, 2009 02:45AM EST
Never mind,it is only a psychological among the Giants.........All their share will go up at the right time..........Bonanza.......
Yahoo! Finance User - Thursday January 08, 2009 07:51AM EST
every balance sheet is 'break even'---that's why it's called a balance sheet---it balances~
Mike - Thursday January 08, 2009 08:34AM EST
Regestered users to facebook are worthless - sorry - but break that demographic down a little and throw out those 15 and younger (which makes up the VAST MAJORITY). Sorry Zuckerberg but you've just been reading your own marketing material too long. Is there value in this audience - sure - but not dollars, maybe fractions of a cent - the 'snake oil' value of the internet is behind us. Facebooks' value as a markenting modality is so diluted that it's value is VERY VERY diluted. If you think there is true value here take it to the street and do your IPO.
ussinvest - Thursday January 08, 2009 08:36AM EST
The balance sheet comment is priceless! Priceless I tell you!
NoStocksForMe - Thursday January 08, 2009 10:30AM EST
Guys why do you pick so much on Sarah! She is soooo HOT!! stop that we don't want her to get fired now do we? ;-)
Sugar Dad Harry - Thursday January 08, 2009 11:42AM EST
Who gives a crap what Henry Blodgett thinks about anything?
Ryuuji desu - Thursday January 08, 2009 03:17PM EST
I like yahoo. wouldn't want any of its affiliates to sell out. P.S can you do something about a upgrade on blackberry for myyahoo and other lovable stuff about yahoo.
Yahoo! Finance User - Thursday January 08, 2009 03:19PM EST
Stop overblowing this Intel thing...This was all factored in already..no surpirse here. The reason Intel isn't at $8 right now is the smart money realizes this isn't an Intel problem, it's an economy problem. The are just caught up in a lowering tide.... 2 q's and they will be back on top.
LukeS - Thursday January 08, 2009 05:14PM EST
Maybe she meant "an income statement that's roughly breakeven" - but really, does anyone believe that facebook is breaking even? Even if they are, they've racked up massive losses already. Social networking sites will never be cash cows like search engines - it just ain't going to happen, sorry.
dakyne_62 - Friday January 09, 2009 06:21PM EST
kinda hot, kinda stoopid...I'm gonna guess FB will somehow monetize their eyeballs when the economy and ad revenue turns around--sometime in the next decade.
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Yahoo! Finance User - Wednesday January 07, 2009 06:23PM EST
Henry was also against selling to MSFT at $30 a share... How's that logic sitting with you now Mr. Blodget?