According to BusinessInsider Facebook has a huge valuation relative to the size of its revenues and how fast (or actually, slow) those revenues are growing. When its shares start trading in late May, Facebook is expected to have a valuation between $75 billion and $100 billion. It's already above $100 billion on private markets. Meanwhile, Facebook's revenues are actually decelerating, reaching $3.7 billion in 2011.
A Facebook valuation that is 15 times the size of its 2011 revenues would be something around $50 billion. A valuation 15 times the size of Facebook's projected 2012 revenues would value the company between $55-$80 billion. There is a big gap between $50 billion and $100 billion.
So whose job is it to close that $50 billion gap? Meet Gokul Rajaram, the product director of ads at Facebook. He is, in the words of an industry source, Facebook's "main man for ads strategy."
Rajaram joined Facebook in 2010 when it acquired the startup he was running with his brother, called Chi Labs. Facebook bought Chai Labs for one reason: to hire Rajaram….
Read more: http://www.businessinsider.com/facebooks-100-billion-valuation-pretty-much-depends-on-this-one-guy-2012-2
No comments:
Post a Comment