The Wall Street Journal reported today on a story that Microsoft could buy into FaceBook at a $10bn valuation.
When I wrote about my justification on why Facebook was worth $10bn a month ago, I had a lot of skeptics who thought that I was smoking some really good stuff. In fact, I saw quite a few visitors on my blog from Redmond - heck, maybe I even helped the deal go through 
At the end of the day, valuations are really about willing buyer, willing seller, and perceived value to the buyer (based on the value that they can extract from the deal). I’ve always said that Microsoft is the most likely buyer here, and I don’t think that Google will get this deal in the bag - in fact, it looks as if Google is going to use Orkut to compete globally.
Facebook holds the biggest opportunity to provide demographic targeted data to advertisers, and the valuation sounds about right, based on that rationale, and all the other metrics combined. Google is not going to take this standing down - watch out for an Orkut retaliation.
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Comments On This Post
September 26, 2007 at 9:22 am
When I read about the possible FB/Microsoft deal, the first thing that popped into my mind was “Vinny will be so in the I-told-you-guys-and-I-was-right” mood”.
Welcome back, btw. Mission successful?
September 26, 2007 at 9:27 am
Thanks Eve - things went very well. Hold thumbs!
Those who know me, know that I LOVE “I Told You So”’s
September 26, 2007 at 11:22 am
When I read about the possible FB/Microsoft deal, the first thing that popped into my mind was “Vinny will be so in the I-told-you-guys-and-I-was-right” mood”.
Welcome back, btw. Mission successful?
September 26, 2007 at 11:27 am
Thanks Eve - things went very well. Hold thumbs!
Those who know me, know that I LOVE “I Told You So”’s
September 27, 2007 at 6:18 pm
I remember reading that blog weeks ago and you couldn’t have been more on target! I have to admit that 10 bn still is a stunning amount, but considering the speed at which Facebook continues to grow and expand, I have no doubt that it’s worth this amount.
September 27, 2007 at 8:18 pm
I remember reading that blog weeks ago and you couldn’t have been more on target! I have to admit that 10 bn still is a stunning amount, but considering the speed at which Facebook continues to grow and expand, I have no doubt that it’s worth this amount.
September 28, 2007 at 11:49 am
[...] when that happens, corporates will have to come to the party. Perhaps if Microsoft bought Facebook for $10 million, it would help. Ultimately, it’s only a matter of [...]
October 1, 2007 at 2:57 pm
Even though I am a relative newbie Facebooker I am not astounded by valuation. I have made more contacts in a shorter period of time that by doing anything else I have ever done. I went to a recent industry event and introduced myself to a big player in the industry and she remembered my friend request and we were able to easily start a conversation. In my world of face to face relationships driving my digital business what was amazing.
Now as you see the apps coming from all of my friends the boom is just beginning. I haven’t seen a killer app, but it exists out there somewhere and it will be coming to you from a Facebook friend soon.
October 1, 2007 at 4:57 pm
Even though I am a relative newbie Facebooker I am not astounded by valuation. I have made more contacts in a shorter period of time that by doing anything else I have ever done. I went to a recent industry event and introduced myself to a big player in the industry and she remembered my friend request and we were able to easily start a conversation. In my world of face to face relationships driving my digital business what was amazing.
Now as you see the apps coming from all of my friends the boom is just beginning. I haven’t seen a killer app, but it exists out there somewhere and it will be coming to you from a Facebook friend soon.
September 29, 2008 at 10:22 am
[...] I digress - back to business and Vinny Lingham touched on this in his recent article on the value of facebook where it’s very nicely summarised: “At the end of the day, valuations are really about [...]
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