Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

How is the value of Facebook calculated

  • 31-03-2011 12:54pm
    #1
    Doom
    Banned (with Prison Access) Posts: 2,381 ✭✭✭


    Worth billions, but how?


Comments

  • #2
    28064212
    Registered Users, Registered Users 2 Posts: 10,910 ✭✭✭✭28064212


    Same way as any business. Assets, revenue, potential revenue etc.

    Boardsie Enhancement Suite - a browser extension to make using Boards on desktop a better experience (includes full-width display, keyboard shortcuts, dark mode, and more). Now available through your browser's extension store.

    Firefox: https://addons.mozilla.org/addon/boardsie-enhancement-suite/

    Chrome/Edge/Opera: https://chromewebstore.google.com/detail/boardsie-enhancement-suit/bbgnmnfagihoohjkofdnofcfmkpdmmce



  • #3
    superelliptic
    Registered Users, Registered Users 2 Posts: 395 ✭✭superelliptic


    Yeah, I wondered that myself.

    http://www.businessinsider.com/how-does-facebook-make-money-2010-5

    Makes sense I guess if you consider the global reach of FB, and how much companies are willing to pay for ad's on the site given FB's exposure.


  • #4
    [Deleted User]
    Posts: 17,378 ✭✭✭✭ [Deleted User]


    It's technically worth billions as a % of shares are bought for a price... When you calculate what 100% would be worth after the valuation, that's the crazy values you hear about.

    I presume Zuckerberg couldn't actually liquidate his shareholding for the same share price as Goldman Sachs paid so he's only worth that on paper.






    I think.


  • #5
    BrianD
    Closed Accounts Posts: 7,221 ✭✭✭BrianD


    There's a notional value based on it's reach (membership) and ad revenues.

    The current value is based on the sale of "secondary shares". These are people who own chunks of Facebook (less than 1% of the entire company) and trade share in the holding companies that hold their shareholders.

    Facebook is still a private company so is there are no shares to be bought yet.


  • #6
    Hal Emmerich
    Closed Accounts Posts: 2,078 ✭✭✭Hal Emmerich


    BrianD wrote: »
    There's a notional value based on it's reach (membership) and ad revenues.

    The current value is based on the sale of "secondary shares". These are people who own chunks of Facebook (less than 1% of the entire company) and trade share in the holding companies that hold their shareholders.

    Facebook is still a private company so is there are no shares to be bought yet.
    Unless your a Major Client of Goldman Sachs.

    I seen a new Valuation of around $100 billion there yesterday on likely profits of $2 billion for this year.

    I'd imagine if I went on to Dragons Den looking for €100 when I made €2 last year they'd kick me down the stairs, the Valuation is gone a bit mad.


  • Advertisement
Advertisement