Comments on: Facebook Loses Face Value – ls Seppuku Imminent?

By: Phil Butler

Phil Butler — Mon, 16 Feb 2009 15:55:23 +0000

Exactly Sporkman, I cannot visualize 750 people milling around tweaking on servers or in offices getting coffee for one another. There could however, be one heck of a party going on. :)

Always,
Phil

By: Sporkman

Sporkman — Mon, 16 Feb 2009 02:33:44 +0000

I agree with mkdrums, 750 seems like an impressively large workforce to develop and serve up a relatively straightforward web service. They should really take a long, hard look at their bottom line, and perhaps try to “maturify” their service by focusing less on new features & more on making their code and data schemes more efficient, thereby controlling the need for the large amount of server/bandwith resources.

By: Phil Butler

Phil Butler — Sun, 15 Feb 2009 15:29:49 +0000

MK, I do not know why these mega startups cannot follow logic as you suggest. There used to be a saying that went something like; “Did you feel your change hitting you in the back”, when people bought something at the wrong value obviously. half a billion dollars could fund any number of winners in my book. I think someone is going to feel something hitting them in the back soon. :) Thanks for your input. Yelling Yeeeeha! and allowing these people to have a mutual gratification society is not helping anyone in my book either.

Always,
Phil

By: mkdrums

mkdrums — Sun, 15 Feb 2009 14:27:08 +0000

Seriously, charge all interested users $5 a year ( I would pay that ) chop the work force in 1/3 (What on earth do 750 people do?) quit adding features ( there are way too many already ) and settle down into a real biz.

Plus the people voting Zuckerberg startup CEO of the year – when his company is 5 years old and bleeding cash – are not helping the situation.

@mattkern

By: Phil Butler

Phil Butler — Fri, 13 Feb 2009 20:06:44 +0000

Good point Anony. The leverage was because MS was afraid Google would beat them to it too. Facebook was in a good position then. The amazing thing to me is that with all these billions, none of these people can come up with a way to make it work for them. I am not an ad man myself, but I bet I could hire some genius ones for a million or two. Just thoughts.

Always,
Phil

By: Anonymously

Anonymously — Fri, 13 Feb 2009 19:24:26 +0000

The $15 billion valuation was based on a business deal — not all 100% equity deal. Also, because it was a bizdev/equity deal — Microsoft had every reason to try push the markets value of facebook. Lastly, at that point and time facebook had a lot of leverage over Microsoft because the first round of the AD deal between the two was about to expire. Anyone that thought facebook market value was 15-”B” clearly was not in the market.

By: Phil Butler

Phil Butler — Fri, 13 Feb 2009 17:44:20 +0000

Thanks for the distinction K. Yes, the valuation has its “variables” shall we say. In the court case, it was apparent that Facebook wanted to “low ball2 the serttlement valuation. Good business I guess, but if they were innocent, it seems to me they would have paid millions in legal fees rather than settle for even $50 million. That buys a lot of lawyers.

Monetizing is not al that complicated in my view. As some have mentioned, paid versions, new age ads, and other value can be monetized. The problem with Facebook and others is that an old world advertising methodoloy was used to valuate people. It was based largely on TV models and print media, when anyone knows the Web does not work like that. Anyone who wants to see some better ideas might email me :)

Always,
Phil

By: Kristen Nicole

Kristen Nicole — Fri, 13 Feb 2009 17:25:55 +0000

Well let’s remember that the $15 billion valuation is based on preferred stock, which is different from the common stock valuation of around $4 billion, used in the ConnectU settlement.
But in terms of Facebook’s necessity to monetize, it’s gotta still be a top priority for the company! And as bad as it may seem, selling user data is probably the most lucrative way to go.
I think there are a number of ways in which Facebook could sell user data without actually pissing off the users, but it would need to be a long and slowly implemented process and would require a great deal of investment (money and time) on Facebook’s behalf.
I think that Facebook has already taken some steps towards this, and we’ll see its “master plan” come to fruition as time goes on.

By: Phil Butler

Phil Butler — Fri, 13 Feb 2009 16:46:41 +0000

Now you are talking Captain! I would not personally use it on a paid basis, as all the other free variants are more than enough for me. You are insightful in pointing out one great way for the best services to monetize. i think part of the problem is our “Free2 mentality. Once Facebook and others drop off the radar because they run out of money, perhaps the collective moans of the millions will lead to people realizing that nothing is free.

Always,
Phil

By: Phil Butler

Phil Butler — Fri, 13 Feb 2009 16:43:34 +0000

Hi Wayne, I think Facebook has enough users already, they need to figure out how to A – provide more value, and B – direct advertising appropriately. Thanks for your comment.

Always,
Phil