The Business of… Facebook
As Facebook shoots past the 500 million member mark, Kipp tells you everything you ever wanted to know about the social networking site, but forgot to ask.
July 25, 2010 4:06 by Samuel Potter
Facebook keeps its cards close to its chest, – as a private company, it only discloses limited data – but the markets love to speculate. Estimates of the exact values of companies like Facebook and Twitter – which are immensely popular and are assumed to hold huge monetization potential, but which have yet to prove it – vary wildly.
Facebook is known to have solid cash flow, but its exact profits remain unknown. Despite this, according to the Wall Street Journal just under a month ago, Elevation Partners acquired an “additional” 5 million shares in Facebook for $120 million. At that price, the company would be worth an impressive $23 billion – up from the $12 billion touted as recently as January.