There's an interesting article in today's Sunday Time's Business section about the valuation of Facebook's.
The networking site really seems to be 'the next big thing' and the star of the Web 2.0 companies. According to the article Microsoft is in negotiations to snap up a minority stake of the company for $500m (£244m). The price would value Facebook at $10 billion! Googleis said to be considering an offer as well. This year Facebook reportedly expects to make a profit of $30m on revenue of $150m. Comparisons can be misleading but, just for the sake of scale, last year British Airways, a company valued at £4.4 billion, made profits of £602m.
Despite the sky-high evaluation I guess it's still worth it for Microsoft, that needs to win ground in order to catch up with Google. It would be detrimental for them if Google closed a deal with Facebook.
Facebook has over 25M users and receives over 100,000 new users per day, and it's founder Mark Zuckerberg, seems to have big ambitions. He states that “Google is all about finding information; Facebook is about communicating that information and sharing it efficiently."
In May, Facebook announced that they were opening up development of applications to anyone. And personally I think this genius. Companies and hobby programmers are tailoring applications for Facebook users – whatever their niche may be. An analyst at RBC Capital Markets, believes that facebook can have 100,000 new applications next year. And looking at the number of travel clients I work with that are creating applications and developing strategies for interacting with Facebook users in 2008, no doubt the travel community on Facebook will have a lot of choice from tailor made services in the future.
The networking site really seems to be 'the next big thing' and the star of the Web 2.0 companies. According to the article Microsoft is in negotiations to snap up a minority stake of the company for $500m (£244m). The price would value Facebook at $10 billion! Googleis said to be considering an offer as well. This year Facebook reportedly expects to make a profit of $30m on revenue of $150m. Comparisons can be misleading but, just for the sake of scale, last year British Airways, a company valued at £4.4 billion, made profits of £602m.
Despite the sky-high evaluation I guess it's still worth it for Microsoft, that needs to win ground in order to catch up with Google. It would be detrimental for them if Google closed a deal with Facebook.
Facebook has over 25M users and receives over 100,000 new users per day, and it's founder Mark Zuckerberg, seems to have big ambitions. He states that “Google is all about finding information; Facebook is about communicating that information and sharing it efficiently."
In May, Facebook announced that they were opening up development of applications to anyone. And personally I think this genius. Companies and hobby programmers are tailoring applications for Facebook users – whatever their niche may be. An analyst at RBC Capital Markets, believes that facebook can have 100,000 new applications next year. And looking at the number of travel clients I work with that are creating applications and developing strategies for interacting with Facebook users in 2008, no doubt the travel community on Facebook will have a lot of choice from tailor made services in the future.
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