Will Facebook Face Reality?
turbotodd 100000388Y Visits (1697)
expounds this morning on Henry Blodget's blog post from Tuesday suggesting that Microsoft is planning to buy Facebook for a cool $6 billion.
Man oh man, I wish my high school yearbook had been worth even a fraction of that. I felt pretty good just getting the student council president and lead cheerleader to sign the thing:
"To Todd: Someday you won't make a lot of money and retire early after Al Gore invents the Internets and all rationality goes out of the public markets and this yearbook will be worth $6 billion, but we like you anyway, dude. Van Halen rules, and homeroom was a blast, especially when you "accidentally" lit that fire in Coach Bean's trash can. Nice try with the fire extinguisher...Your dork friend, Tony T."
At a cool $6B, Facebook is 1/25th the valuation of Google, but such a price would be 200 times earnings.
Excuse me, could we get some serious bottled oxygen in this hugely malleable inflatable bubble???
Battelle defends Google's early and high valuations by citing the Google PageRank algorithm, which is certainly a defensible position to take. PageRank was and continues to be a very valuable patent.
Facebook's defensible position? It's motto? "A social utility that connects you with the people around you."
Ah, right, of course.
Full Disclosure: I have a Facebook profile that I rarely visit. But it's really cool just having one.
Of course, nobody can sign the darn thing. And apparently, not nearly enough folks are clicking on the ads.
The U.K.'s "Reach Students'" blog ran four targeted campaigns there this year, and witnessed only a 0.04% clickthrough rate. "Ouch" indeed, blokes. Maybe rent some dirigible space over central London instead?
Me, I just want Tony T to become one of my Facebook friends. And click on a few ads, now and then.
And Van Halen still rules!