The Uproar Over Facebook – Y’all Are Jus’ Jellus
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You may have seen all over the news lately that some people have estimated the worth of Facebook at $10 billion. Yes, that’s right, billion with a ‘b’. And opinions have exploded all over the place, with most people decrying the rather high value that has been set.
First of all, the math is a little off. The $10 billion calculation comes from the deal that was just announced, where Russian firm Digital Sky Technologies bought 2% (actually 1.96%, but please, I’m rounding up) of preferred Facebook stock for $200 million dollars. People have been using the equation if 2% = $200 million, then 100% = $10 billion, which isn’t exactly an apples-to-apples comparison, because the 2% was not common stock, but preferred so the common valuation for the company would actually be lower.
Still, the fact remains that Facebook is worth more than any of us will likely see in our lifetimes. And that makes its founder and CEO, Mark Zuckerberg, a very rich, or rather richer (and some would argue lucky) man. And that somehow makes it necessary for people and pundits out there to try and cut him down to size because he dared to succeed where most of the rest of us have tried (or thought about but not actually tried) and failed.
Why is there the need to pick apart the value of Facebook?
Both Digital Sky and Microsoft have paid hundreds of millions of dollars for the privilege of having infinitesimal amounts of Facebook stock. Zuckerberg has pulled in almost $500 million and given up less than 5% of his company; frankly we should be lauding his success and asking him to hold our babies in the chance that some of that skill/luck might rub off on them.
“But Facebook doesn’t make any money!!” … you cry.
While it’s true that Facebook suffers from the social media disease (hee) that also affects Twitter (the one where when you give away everything for free, if millions are using it, you get 0 x infinity, which is still 0) but it is not without resources. And more importantly, to draw in this kind of money from people who know what they’re talking about, it’s not without plans, either.
“But the new design sucks!”
Umm…so what?
People are still using it. People are still getting results from it. And people like me are still using it to promote their businesses (are you?)
“But Beacon was a disaster!”
Well, yes, so it was.
And the fact that Facebook is still alive and kicking and having people invest hundreds of millions of dollars into it speaks well of its ability to both adapt and recover from setbacks.
“But Zuckerberg is a control freak who’s ruining the company!!”
Really? According to whom? Mark Zuckerberg is a 25 year old who has accomplished an amazing amount of things so far in his life for anybody, much less someone under the age of 30. He has a knack for coming up with ingenious pieces of technology. Even if any of the accounts of his control-freak leadership are true (and I’m certainly not saying they are) he’s 25 years old. How many of us would have been able to run a billion dollar company at that age?
Like I said, you’re all jus’ jellus. And so am I, but at least I can admit it.
(And lest I contradict my own post about the importance of good grammar, those misspellings in the title were intentional.)
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So what comments do you have?
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I really do not understand what the big deal is by some of the people. I just don't think that anyone is going to pay that kind of money when it's hard for facebook to make any money.
Well put. Looks like we ALL suffer for “success envy” at some point/level. Just look at #unfollowPDiddy after his vid on his plane after reaching one million followers on Twitter!
Ya, i thought that was pretty funny.
isn't it that fbook makes money from its advertising platform?
I seen the release, and thought it was a joke. I agree with the jealousy factor, get over it already! I enjoy Facebook, though I mainly use it as a social rather than business tool. I agree, at age 25 I could barely manage my own checkbook, let alone a company generating billions of dollar$.
Kudos to you Mark Zuckerberg.
Yes they do make money but are not a cash cow currently. I firmly believe however that this is going to change soon and is the main reason companies are willing to invest so much in so little stock of the company. There have been some finances leaked but they are certainly not making mounds of profits.
Re the deliberate misspellings…
a) Are you trying to make the world more ignorant?
b) Do misspellings attract more clicks?
c) Do they help you connect with your readers?
d) ???
your need for a plan B might be my change to help 800 676 8530
wwwmylastjobevercom summer money
I use FaceBook on just about a daily basis, and I am new to it. I like it now that I have figured out how to get rid of all of the features that I do not need.
Geez, whats wrong with creating a product that pays off, a idea that benefited all involved while users have been enjoying the Freebie ness of FB either for connecting with family or friends including many have furthered their business or launched carreers including its users for FREE (did any money makers chime in a dime?) while Zuckerberg and others chimed in hard cash, dev time etc. NOT FREE. so why the fuss? He deserves to make what the market will pay,,, Google Guys did, ,, Fords, Johnsons etc. So….
what's 1/10th of $10 billion?
$1 billion!!!!
That would be nice……wait, even 1/100th of that would be nice……
Not to mention that Microsoft had it valued at $15b when they bought a stake in the company for advertising purposes a year ago.
I'd value it at $5.75 billion myself based on their cash flows and future earnings power.
Facebook is worth alot of money..but 10 billion? maybe
Enjoyed the article so much I added a link to it to one of my Squidoo lens about Facebook. I thought I had done some pretty amazing things at 25, but I don't, nor do many, hold a candle to what Zuckerberg has accomplished!
As I wrote in an widely accepted article on blogging bloke about suffering bloggers and billions of people who are on the internet, but also billions of websites, It fantastic to receive more than your 1 person to 1 website share.
Facebook and many other websites with young creative minds behind them have achieved this and Yes it does make you envious not “jellus” if you use it to propel you into to striving until you reach or at least get close to the same performance level.
I know in my own ventures with humor sites and Unique Web Apps to capture some of the internetters, my own attempts are constantly
inspired and renewed with news like this.
admin@thecomedynet.com
I love facebook. But I have not used it fully to promote my website. Facebook is now at the top overcoming MySpace, and I believe they are earning enough in their new advertising programs. It still has the potential to grow.
I agree with JM – Mark deserves what he has and people should just get over it – He's supplied us with a free/quality service, which we all used, putting his own time and money into it… so why when he see's return does everyone else have a problem?
John, it is true that we are Jelous.
Achiving all that at age 25 is phenomenal. Am 28 and can only dream about the success of the face book founder. Thanks for the post.
Facebook is really good place for advertising.
Imagine if Facebook puts an “pre-load” ad during the login process…
-Mike
Facebook, Facebook, I read everywhere about Facebook. And I found the video about the Russian transaction in an article http://jugsi.com/web/your-facebook-profile-can-reveal-the-real-you . This Zuckerberg is a lucky and smart boy…