Thiel: Facebook’s Worth $8-Billion

Investor Peter Thiel — a Facebook board member — thinks that Facebook is worth considerably more than the $1-billion offered by Yahoo:

Thiel, 39, says the site’s college-aged users make it
worth $8 billion or more, as much as Viacom Inc.’s MTV music
video channel.

Ten? Ten? Do I hear ten? Who’ll say ten? Okay, ten.

[via Bloomberg]

Related posts:

  1. Bloomberg Profiles Peter Thiel (of PayPal and Clarium Fame)
  2. Facebook vs. YouTube: Which One’s Worth More?
  3. Now, Where Did I Put That Other Billion?
  4. No More Billion-Dollar Exits
  5. Sites Worth Scanning

Comments

  1. B says:

    You’ve got it. Ten. And, when the economy falls off of a cliff, he’d have wished he negotiated with Yahoo rather than being unrealistic. We are at the peak of liquidity and manic stupidity and he should get out while the getting is good.

  2. Joe says:

    Hmm, and how much money is Facebook making today? He refused to open his books, but I’ll wager it isn’t very much. If it were, why would he be selling at all?
    What kills me is the statement that the user base “makes it worth $8 billion”; no, the advertising revenue makes it worth whatever it’s worth. The demographics of the user base only dictate who the advertisers are and how much they can be charged. (Isn’t it annoying that such idiots become millionaires.)

  3. Andi says:

    >>> We are at the peak of liquidity…
    With a weakening dollar and a fright in Asia why do you say “peak of liquidity?”
    They will find a better deal and are geniuses, or not and are idiots. Outcome matters.

  4. AdamD says:

    A better use of 8 billion: pay $6,000 each to the 1.3 million students at the nations largest fifty schools to switch to your new service, Yahoo!Book.
    Seeing as most of those schools are public and in-state tuition averages that same $6,000, you could probably pay half that and still have most of their attention. (Yippee! You just saved 4 billion).

  5. B says:

    I’m not sure what a weak dollar has to do with anything. That’s not cause, it’s effect. Oh, and the dollar isn’t weak against most currencies. Far from it. It’s been strengthening against most currencies. YOY money supply has fallen off the table in Japan without precedence. Plenty of liquidity? Uh…….
    They may be geniuses because I have no idea who they are. Asset pricing today is a mania. They need to find a buyer before the mania ends. Otherwise, they’ll look back on these days of easy money and wish they weren’t so brash.

  6. Andi says:

    >>> I’m not sure what a weak dollar has to do with anything.
    Oh, ok.

  7. Andi says:

    I suppose I should give a better explanation than “oh, ok.”
    No human being is bright enough to explain the entire macro-economic model, there are too many moving parts and Paul’s comments are not the place to try. But a change in the valuation of the dollar is both cause and effect depending on where one is standing. When capital is fleeing uncertainty as it is doing in Asia at the moment a declining dollar makes US markets look like a safe haven and is attractive, increasing liquidity here. Yes, that could merely be a transient thing and many other factors certainly may come into play.
    But liquidity is aptly named, it is the most fungible of fungibles and it is often controlled by the most secretive and cunning among us. Never in human history has wealth been created on such a vast scale and at such a blinding rate. I’d be careful about calling a peak on large scale liquidity. Though if you say it confidently enough it can carry the day in a complex negotiation.

  8. Andi says:

    Sorry about cluttering your comments Paul I knew I couldn’t explain that without an error.
    Change: “…a declining dollar makes US markets look like a safe haven…”
    To: “…a declining dollar makes US *ASSETS* look like a safe haven…”

  9. pwb says:

    “A better use of 8 billion: pay $6,000 each to the 1.3 million students at the nations largest fifty schools to switch to your new service,”
    If that would work, don’t you think someone would do it? Didn’t think so.

  10. whooknew says:

    Well, I guess $8B wasn’t high enough. What a difference a year makes! I just don’t agree with his rationale, especially after his speech at dinner.