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So Goldman bought into Facebook. Not that earth shattering you might think but the value of the purchase means that the overall shared value of Facebook as an entity is $50,000,000,000. Are you serious?

At best Facebook is a congregation, a sales database that would be very upset if it was overtly exploited and a way of staying in touch. Take advertising revenues in the social media market at $20/1000 and multiply it out...

An advert on Facebook reaching 500m people at absolute best is $10m, you would need to sell 5,000 adverts to make your money...pretty 'do-able', but based on the fact that a huge proprtion of Facebook accounts are regularly inactive, you'd want clicks surely and whats your rate for that on that money 1%? Be kind 10%...you need to sell 50,000 adverts with 50m click throughs EACH to break even...In this lifetime? I don't think so.

Facebook has minimal investments and equity in comparison. I feel a bubble bursting sometime soon

Ewen

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Ewen Rankin

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