Yes, Facebook has 600m users – but could it really be worth $100bn?
Is there serious money to be made from popular social media websites such as Facebook, Twitter, LinkedIn and Groupon?
But these are small beer compared to the frenzied valuations circling Facebook, which is widely expected to seek a stock market listing next year. Some are suggesting its could be valued at $100bn – more than Ford and Visa are worth. At this price it is still worth less than that other internet behemoth, Google, which, coincidentally enough, has recently launched its own social media site, Google+.
Rob Morgan at Hargreaves Lansdown said: “The rise in social media has been meteoric, largely due to the internet’s greatest strength – rapid and inexpensive sharing of information. Sites like Facebook, have a reached a critical user mass. If it were a country, its 600 million users would make it the third largest in the world in terms of population.”