Let’s Justify Facebook’s $300-Per-User Valuation

Some quick math makes Facebook’s $15 billion valuation look even crazier. Apparently the guys over at Silicon Valley Insider also bothered to crunch the numbers.

  • Bebo sold to AOL this morning for $850 million and have about 40 million users, costing $21.25 per user.
  • In July 2005, News Corp. purchased the parent of MySpace for $580 million. At the time, MySpace had about 21 million users, costing $27.62 per user.
  • Those are as direct as we can make it, but let’s say we bring out a crazy deal where the buying company admitted they overpaid. When eBay shelled out $4.1 billion for Skype, it paid about $52 per user.

Admittedly Microsoft has plenty of money and probably didn’t worry too much about the valuation when agreeing to terms with Facebook, so we’ll raise our estimates a bit. Also, Facebook has shown an unwillingness to sell or go public, indicating that it’s building for the long haul, meaning its users could grow in value over time. But at the time of the Microsoft deal, Facebook had about 50 million users who were valued at $300 each. Readers, care to tell me how Facebook users can achieve that value?

Kara Swisher has her own math on the Bebo deal as well.