What's Facebook Worth?

Feb
02

You’ve probably heard about Facebook filing the preliminary prospectus for its initial public offering (IPO). Mashable states as rumored, the company is seeking to raise $5 billion, and if it manages to raise this capital, it will be on a shortlist of biggest tech IPOs of all time.

Five billion is a hard number for me to grasp. Sure, it sounds like a TON of money. For me, it is incomprehensible on how to put a price tag on something, such as Facebook, that has completely changed the way we live our lives every day. Not just from a marketing perspective, from a human perspective.

The January 2012 edition of PRSA’s Public Relations Tactics compiled stats on what is the social media motivation for adult Internet users who use Facebook, Twitter or Linkedin:

  • 67% Stay in touch with friends
  • 64% Stay in touch with family
  • 50% Connect with old friends
  • 14% Connect with like-minded people
  • 9% Make new friends
  • 5% Read famous people’s comments

This amazing piece of technology wasn’t available ten years ago, and people from all over the world use it for so many different reasons. What is the price tag you would put on it?

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