Mon, December 18, 2006
What are these people smoking? Facebook was offered $1 billion by Yahoo, and a big room of board members sat around and said, “that’s not enough.” According to the story, the offer comes from "revenue projections of $608 million in 2009, growing to $969 million in 2010, where it would remain at levels near $1 billion annually through 2015. However, Facebook's actual 2006 revenue appears to be closer to $50 million in revenue, or nearly $1 million per week. These projections, by the way, assume that Facebook grows to 48 million users by 2010, out of a total high school and young adult population of 83 million.”
So, let's see - you recorded $50 million in sales in 2006, you speak to an audience that’s always looking for the ‘next big thing’ and maintain a technology that for the most part has minimal barriers to entry. What financial analyst projected $608 million in 2009? I may be WAY off here but I will put it in writing now that Facebook never sees $1 billion in revenues.
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