Well, it’s been a relatively quiet week or so regarding Facebook so let’s see what the talk around town is. It looks to be about Facebook’s valuation and whether they are seeking money or not. Also, if they are seeking some more cash what is it for? Some say a stock buy back from employees. Some say something else. It’s social media’s version of ‘He said, she said’ but the truth must be in there somewhere, right?
After all, we couldn’t continue to function if there was no Facebook, correct? Sorry, it’s early and there isn’t enough coffee in me to cool the sarcasm on this kind of stuff. I realize that by writing about I add to the fray but unfortunately until someone comes up with something that can generate the kind of users that a Facebook or Twitter can we may be stuck with this for a while but I digress.
TechCrunch updates us on the current state of the union regarding Facebook and the future of mankind. Here’s the first paragraph of Michael Arrington’s post, which is the latest in the “How much is Facebook worth?” musings.
In the last couple of weeks Facebook received and turned down a term sheet for a new $200 million venture round of funding that would value the company at $8 billion, we’ve learned from a source with direct knowledge of the proposed transaction. We’ve also heard that they’ve received at least one other term sheet that valued the company at $6 billion.
Lots of money for sure. You have to wonder how Microsoft is feeling about that $15 billion valuation they bought into. Arrington offers a good summary of the latest rumors
The last few months have been crazy with rumors. BusinessWeek reported that Facebook was looking to raise $100 million in debt. We reported on early term sheets in the $2 billion range. Even Google was sniffing around the company to see if they could buy it on the cheap.
We have no information yet on whether or not Facebook is continuing to pitch for new money, or if the rumors from last weekend from VentureBeat that says they’re close to closing $150 million from existing investors in a common stock sale that would value the company at around $4.5 billion.
And so it goes. What is most interesting is the talk of revenues (that’s right, revenues) over at Facebook. The predictions for 2009 revenue range from $400 million (leaked by some Facebook super secret double agent apparently) all the way up to $550 million which is an impressive number and also possibly a dream number. Compared to the numbers from last year, which were between $230 and $250 million, it certainly is trending well whether it’s real or not.
So the question is do we even need to follow this sort of information? As users of the service are you more concerned with how it works or how much it is going to make for investors? Are the rumors just a distraction? I am starting to think so. Now once there are rumblings of an IPO that would be something that the rest of the world can be interested in for sure.