4 ms·

The multiples on valuation still has my head spinning. Blink and I'd say $3B was crazy, but this. makes. no. sense. Especially now that you see that it's a lose

The multiples on valuation still has my head spinning. Blink and I'd say $3B was crazy, but this. makes. no. sense. Especially now that you see that it's a lose lose situation for FB. Market irrationality undermines my confidence in my own work. I don't like it one bit. Thanks for the post.

dhoulb 13y ago
$3-4b does sound about right - factoring in the market/investor factors this article goes into. If they convince all of their users to pay the $1 next year, that's $450m in revenue, so 8-10x revenue is a reasonable price for a tech company (outrageous for any other industry, but it's tech). But 40x revenue, that's just INSANE. I'm sure there's something Facebook could've spent $10b on that would've achieved the same goal (making Facebook more kid friendly). How about a free iPad for every kid in the US?... Not an outrageous idea.