Microsoft to Buy 5% of Facebook Valuing at $10bn

l-ascorbic writes "The Wall Street Journal is reporting that Microsoft is poised to buy 5% of Facebook for $300 million to $500 million, valuing the company at up to $10 billion. Microsoft already handles advertising for the site."

Comments

$10 billion

[Anonymous Coward]

$10 billion for a site that has 34 million active users ~= $300 per user. Hmm. I think this site is highly overvalued. But let MS waste their money if they want.

Re:$10 billion

[Chineseyes]

The problem is that sites like myspace and facebook ARE NOT long term hubs for people to visit. They are trendy sites, back in '99 when I was in a freshman in college the place to go was blackplanet, mi gente, Asian Avenue, and livejournal. After these sites it was friendster which was ethnically all inclusive. Now the new trend is myspace and facebook. All of these social networking sites are just fads and when something that looks better comes along everyone will abandon myspace/facebook/whatever and start aggregating friends somewhere else.

Well, that's one way to get Silverlight adopted...

[mad.frog]

...just require 34 million active Facebook users (who are probably mostly young, rabid web users of other sites too) to install it.

How long till we see some cool new site feature -- or, hell, even an existing, basic feature -- reworked ("enhanced") to require Silverlight?

Re:This feels like 1999 all over again

[monk.e.boy]

How the hell is Facebook worth $10 billion?

Repeat after me: BUBBLE

Next month it will be worth ONE HUNDRED BILLION DOLLARS, and the month after it'll be worthless.