Archive for September, 2007

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Facebook valued at 10 billion?

September 11, 2007

A post on venturebeat says that facebook may be seeking another round of funding. The most interesting thing in that post is in the last two sentences, where investor Peter Thiel states that facebook could net a 10 billion valuation. If you follow the link to thedeal.com, it states:

If Facebook were to be acquired, Thiel, who is president of hedge fund Clarium Capital Management LLC and managing partner of VC firm Founders Fund Management LLC, estimates it would command a price tag between $7 billion and $10 billion

………..wow.

I will admit that I was one of the people saying that Zuck and Co were crazy for not selling the site for one billion dollars last year (both yahoo and microsoft were reportedly interested). But the guys at facebook obviously knew that they were getting ready to open the site up as a platform, and in one years time, the price tag for that enterprise has ballooned to almost 10 times what was being offered. The moral of the story is this: sometimes when you hold out, you end up like friendster. Sometimes you beat the system.