Is Facebook Worth $15B?

By now everybody has heard that Microsoft is investing $240M into facebook to own 1.6% of the company valuing facebook at $15B.

I don't know if that valuation is too much or too little, but somebody thought so and paid it.  $15B definitely sounds too high, and as I wrote before, clearly the highest valued venture backed company to raise a private round.

But for those who think it is too highly valued, compare Facebook to Yahoo valued at $42B.  Look at the chart below.

There is Yahoo at $42B on the decline, and there is facebook at half of Yahoo's pageviews on the rise.

How doest that $15B feel now?

Comments

[Baris Karadogan]

Here is what I think.

Microsoft doesn't care about the valuation. It's a business deal for them. Invest $240M to get a few billion in the next few years and get a piece of the growth.

Fof other investors, that's a different story.

[Constantine]

well it seems you are right... for me its the years of 1999-2000 comming back, although its not going to be such big bust it will affect the .com industry... 15B USD for something that barely makes 100-200million USD right now is way too much... the same is for google but at least on them the valuation will "get corrected"...

Greetings from a very chilly Athens