Fox on Facebook: Not at These Prices

Some people continue to insist, in good bubble fashion, that a  $2-billion price for Facebook isn’t all that bad. For example, Mike over at TechCrunch called it “high but not ridiculous yet”.

I like Mike, so I say this out of love: Are you nuts? It’s high, ridiculous, and, okay, highly ridiculous.

Sure, Fox bought MySpace for half a billlion, and sure it has grown nicely since then, but so what? If paying four times as much for a smaller, slower-growing site whose main users leave in lock-step graduating cohorts every year isn’t mad, then I have no idea any more what is.

And Ross Levinsohn over at Fox apparently agrees. Here is what he said on the subject earlier today at a Bank of America investor conference:

“We’re certainly not paying $2 billion for Facebook. If the price was right I’d be interested in it. It’s a great site and I know the guys there well.”

I know, I know … what else would he say, right? Just go right on believing that.

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Comments

  1. brian says:

    my back of the envelope calculations (just from public speculation) put Facebook at no more than $200 million

  2. Marquee says:

    It’s worth at least a godzillian dollars!

  3. Niki Scevak says:

    Picking up on the Facebook-sale-is-similar-to-Skype meme, isn’t this exactly what the Skype guys did in their sale? Get News Corp to say that they wouldn’t buy them at that exact price but cause a general paranoia that perhaps there are discussions going on? Perhaps News is becoming the pinada negotiation leverage point of the web 2.0 slot machine?
    p.s. Next up for Facebook will be to announce the preparation of an IPO, no doubt.

  4. I just did a few calculations into how crazy the Facebook $2b valuation is. Turns out that while my data is probably only good for a laugh (read: take this analysis with a *HUGE* grain of salt), it does seem to be an insane valuation.
    Check it out:
    http://www.iseff.com/2006/04/by-numbers-is-facebook-worth-2-billion.html
    Have a good one,
    Ian

  5. David C. Rose says:

    The exclusiveness of the website is what made it such a good catch at first. It almost gave students another reason to want to be in school, which is good and bad. But once the Facebook execs decided to go from mom and pop to walmart they lost quality.