All Things Tarun

  • 12:57:20 pm on January 3, 2011 | 0
    Tags: , , , , , , ,

    I’m not really for the Facebook IPO. While I think Facebook is an excellent service, it seems perfectly made to be swallowed by a larger fish. However, this seems almost impossible because of the recent news of Goldman Sachs’ valuing the company at a whopping $50 billion. To put this in perspective, Google’s total assets, including property and liquid cash, sits at roughly $53 billion today.

    So what happens if Facebook does commit to an IPO? It seems likely that the first year will be dictated as to how it monetized the service not only by the ads that are strategically placed on the site itself, but how the connections that we make to others is monetized as well. Facebook has a strong userbase, and it is likely that the users are talking about products that could be easily marketed through people, not just at people.

    Ultimately, Facebook won’t lose money — the service is not going anywhere with the amount of subscribers. As usual, the site should continue to evolve and attempt to permeate itself even deeper into our lives. It seems clear that a modern friendship does not exist without the social networking aspect, so Facebook as evolved from a commodity into a necessity.

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