Facebook IPO set to go ahead

[Funk]

According to The Telegraph, Facebook is set to float with a valuation of c.$100bn. The company turned over $4bn or thereabouts last year. Its inherent value is solely that of user information (which may or may not be genuine) and the number of users (said to be 800m+; how many accounts are actually active?). From what I've seen, it seems to be mainly full of useless crap created by morons. Is it really that valuable?

Facebook has long been criticised for its approach to privacy and advertising. Will the pressures of meeting trading expectations force it to move to more aggressive advertising and therefore potentially alienate or drive away the very users that give it its 'value'?

So is "the biggest technology floatation in history.." actually the biggest 'dot.com' bubble about to burst?

FWIW, I don't have a Facebook account.

Edited by Funk on Wednesday 1st February 12:43

[Mikeyboy]

It is a very expensive database where people update their own information. And as we say in my business, put crap in and get crap out.
Seriously I fail to see how this company is worth that mauch. Its sole value is data and advertising revenue. So just like that other great investment, Bebo or MySpace then.

Its lasted a long time for one of these things but that doesn't mean it will last forever and whenit goes it will go pop and leave nothing but debt behind.

[Murcielago_Boy]

How many FB accounts are there?
How much is being paid (by investors) for each account (at $100bn valuation)?

The answer is........ ahahahahahahahahahahahahahahaha

[0a]

Mikeyboy said:

Its lasted a long time for one of these things but that doesn't mean it will last forever and whenit goes it will go pop and leave nothing but debt behind.

Hear hear, I managed FB advertising once and we were forever wating for the 'big thing'. They have lots of data and pvs, but people are quite resistant to ads as they are in browsing/fun mode.

In addition I predict a move back to privacy (it could become fashionable to delete your FB account) and towards a model where I expect to be paid, and paid well for you to access my data and advertise to me.

[Slaav]

0a said:

Mikeyboy said:

Its lasted a long time for one of these things but that doesn't mean it will last forever and whenit goes it will go pop and leave nothing but debt behind.

Hear hear, I managed FB advertising once and we were forever wating for the 'big thing'. They have lots of data and pvs, but people are quite resistant to ads as they are in browsing/fun mode.

In addition I predict a move back to privacy (it could become fashionable to delete your FB account) and towards a model where I expect to be paid, and paid well for you to access my data and advertise to me.

Can't help but agree with everything above.

This has the makings of the biggest bubble bursting at some point ever.

Will make the dot.com boom and bust look like a mere ripple....

Will we ever learn?

[Oakey]

Murcielago_Boy said:

How many FB accounts are there?
How much is being paid (by investors) for each account (at $100bn valuation)?

The answer is........ ahahahahahahahahahahahahahahaha

Someone worked it out at $75 per user.

[elster]

Funk said:

According to The Telegraph, Facebook is set to float with a valuation of c.$100bn. The company turned over $4bn or thereabouts last year. Its inherent value is solely that of user information (which may or may not be genuine) and the number of users (said to be 800m+; how many accounts are actually active?). From what I've seen, it seems to be mainly full of useless crap created by morons. Is it really that valuable?

Facebook has long been criticised for its approach to privacy and advertising. Will the pressures of meeting trading expectations force it to move to more aggressive advertising and therefore potentially alienate or drive away the very users that give it its 'value'?

So is "the biggest technology floatation in history.." actually the biggest 'dot.com' bubble about to burst?

FWIW, I don't have a Facebook account.

Edited by Funk on Wednesday 1st February 12:43

There are 600 million accounts actively used (within a 1 week period) So quite a few.

The data that is on there is priceless, the photos on there alone are priceless. Just think they can use your photos without your permission for anything.

[singlecoil]

elster said:

Just think they can use your photos without your permission for anything.

And how much money are they going to make out of that?

[0a]

elster said:

There are 600 million accounts actively used (within a 1 week period) So quite a few.

The data that is on there is priceless, the photos on there alone are priceless. Just think they can use your photos without your permission for anything.

I don't think the data is priceless. It can turn a very very poorly performing campaign into a poorly performing one at the moment IMO. They have not yet found a way of using the data that makes loads of money (compared to the $100bn figure).

One big mistake and they could be done for, it is very easy and costless for people to de-FB or to change their privacy settings.

[andy_s]

It is what it is, it isn't what it isn't, I think they've valued it as being what it isn't.

[freecar]

I'm glad that the majority of people here feel like me.

How the hell can that useless website full of idiots be of any worth whatsoever?

$100,000,000? Pull the other one it's got bells on.

[anonymous-user]

It's worth about 10p from the little I've seen. Looks like a bubble ready to burst. If I was Mr Zuckerberg I'd be doing the same and then cashing in quick before everyone else realises.

[onyx39]

I think a lot of the big spenders on advertising seem to think that Facebook is "the way forward" pretty much any advert on TV for Kellogs / Cadburys etc to name but a few says "find us on Facebook" I would guess putting together a sales campaign using Facebook would be infinitley cheaper than running your own website?

[cptsideways]

It'd be an ideal platform to launch an Ebay competitor from that'd make it very valuable imho

[OllieC]

Should buy Pistonheads, the answer to everything is on here

[qube_TA]

rovermorris999 said:

It's worth about 10p from the little I've seen. Looks like a bubble ready to burst. If I was Mr Zuckerberg I'd be doing the same and then cashing in quick before everyone else realises.

This.

Convinced the bubble on social media is about to burst, the preconceived idea that all this personal data is worth so much money can't be substantiated.

[anonymous-user]

I read (so it must be true) that the IPO values each user at 70-odd quid (or dollars, can't remember). Either way WTF?

[clonmult]

elster said:

There are 600 million accounts actively used (within a 1 week period) So quite a few.

The data that is on there is priceless, the photos on there alone are priceless. Just think they can use your photos without your permission for anything.

If the data had any quality or reliability, it would be priceless.

But as others have said, it seems to have a ridiculously high percentage of complete and utter ste.

Early days of Facebook seemed quite good - primarily more interesting people using it, and it seemed to be genuinely interesting. But now as more younger/stupid people get on board, the quality is dropping below what I remember seeing on MySpace.

And of course it all worked out well for MySpace ....

How the fk anyone can value it as high as they do I'll never understand. But then Zuck doesn't care, he'll just take the money and run.

[ewenm]

Sounds like the founders are getting (the cash) out while the going is good. Sounds like a good strategy to me. Good luck to them.

[Mikeyboy]

elster said:

There are 600 million accounts actively used (within a 1 week period) So quite a few.

The data that is on there is priceless, the photos on there alone are priceless. Just think they can use your photos without your permission for anything.

Nope they can't I believe someone took them to court and they backed down and admitted that they couldn't do that anymore.
If not someone will in the future, and easily too.
Copyright, privacy laws and image rights laws in various countries will also make it very difficult for them to sell images universally.

As for the data, see my above post and the one poated afterwards about people eventually wanting companies to pay them for their data.