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In the next two years of Facebook, they could only be acquired as a strategic investment, valued at $5-7B if a large player like Google/Microsoft/Yahoo tries to
by rms 18y ago
In the next two years of Facebook, they could only be acquired as a strategic investment, valued at $5-7B if a large player like Google/Microsoft/Yahoo tries to buy them. Maybe a sovereign wealth fund? Unless those funds stay away from Web 2.0.
Beyond that, yes, they'll have to show revenue. Facebook will be a good test of the ultimate stability of the Web 2.0 Bubble. I think their best strategy is to go into the mortgage market, but the consensus of this board seems to be that Facebook won't succeed in the mortgage market.
- ctkrohn 18y agoI highly doubt a sovereign wealth fund would invest in Facebook. Most of their recent equity investments have been in dividend-paying stocks of US banks; they also tend to buy a lot of fixed income assets. Facebook won't be able to pay dividends any time soon, and while I recall them doing a debt offering, I can't imagine it's on the scale that would appeal to an SWF.
- ctkrohn 18y agoAlso curious: what role do you see for Facebook in the mortgage market? It not really the most lucrative area right now...