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Facebook = $15 billion. MySQL = $1 billion? The world is a messed up place.
by runningskull 19y ago
Facebook = $15 billion.
MySQL = $1 billion?
The world is a messed up place.
- idea 19y agoFacebook is overvalued. But the numbers 1 and 2 in a market are much more valuable than the rest. If you buy number 1 you are the market leader and if you buy the runner up you can fight for market share or buy some smaller players later on. The number 3 is only interesting if the company can quickly gain a lot of market share. Often those companies are sold off again if that does not happen.
- mattmaroon 19y agoFacebook also has a much better revenue model than providing support for open source software.
- sanj 19y agoHow do you figure? $3/user/year doesn't knock my socks off.
- abc3 19y agoBoth of the above comments refer to cliches that have been repeated so often that it's tempting to believe them. We read all the time about number 1 or number 2, but companies survive or die based on profitability and fiscal responsibility, not market position. Also, revenue model != revenue or, more importantly, earnings. And whether a company has a good revenue model is at best peripherally related to how accurately it's valued.
- dpapathanasiou 19y agoI'm not sure the MySQL figure is too high. Compared to Oracle's market cap of $113 billion, MySQL is a relative bargain. And while their business models are different, Sun is in a position to make a major dent in Oracle's client base. With Sun behind them, it's easier for big enterprise customers to go along with MySQL instead of Oracle; support costs for using MySQL are also cheaper. The net effect will be more profits for Sun overall.
- gleb 19y agoYou are worth your asking price times the probability of getting it. Facebook is not worth $15 bil, not now anyway.