Facebook and GS tie-up may be unholy disaster (Part 2)
Thursday, 13 January, 2011 Leave a comment
I was reassured to find out that I am not the only person who “harbours concerns” about the future for Facebook:
“…This meme has slowly propagated, and quite a few other analysts have looked at the same; See Douglas Rushkoff and the Reformed Broker, amongst others. Goldman Sachs does not agree with this assessment, as they just poured $500 million into FB at a $50 billion dollar valuation, with an option for another $1.5 billion right behind it.
If and when Facebook goes public, they must monetize their user base — I find it hard to see how they do that without annoying their base of users away. Mine is a decidedly non-consensus viewpoint.
The free web app has to figure out a way to have the site generate revenue and profits from its immense user base. Currently, they generate about $ 1 billion dollars in revenues at about a 25% margin”.
Read full article: 5 Questions for Facebook Investors
- MEMO: Goldman Tells Employees To Destroy NO Facebook Documents (GS) (businessinsider.com)