Saturday, July 14, 2007

I'll have my Facebook with cherries and whipped cream.

Facebook is clearly the flavor of the month. There is talk that this company is worth $10 billion. This is on revenue of $100 million dollars. So if you get your math right, that's an 100x valuation. Microsoft is rumored to be willing to cough up to $6 billion. Mark Zuckenberg might not be interested given that he has already smelt blood given the incredible attention his company has been receiving. How long will the facebook bubble last? Well that depends on a couple of things

1. How will the 300 pound gorrilas Google, Yahoo! and Microsoft attack the social networking space. Will they build or buy into this space?

2. Monetization of social network is still an unsolved problem. I beleive that the big three have an edge on this even though Monetization of Social Networks is unchartered territory. How does Facebook deal with this?

3. Will the Facebook traffic continue to grow or will other predators Myspace, Ning, Beebo and others eat into FB's lunch in what is clearly getting to be a crowded space?

Too many questions, not many answers. I guess that's what makes all this so worthwhile

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