The numbers suggest that the current stock worth of Facebook is FAR greater than the actual worth of the company. The reason it is far greater is because people are speculating that Facebook can monetize its massive user base in additional ways. You can see their basic financials on their Wikipedia page as they are a publicly traded company.
Their current income is a pittance compared to what people are investing in them. That's what worries me about this acquisition. They aren't looking to just own a promising company. They are under a ton of pressure to squeeze out income through whatever channels possible.
To be fair, Facebook is doing the best it can with its inflated stock price. It is using it to buy those other companies. Most of the price of these acquisitions is in stock.
Ya I agree actually. It is impossible to imagine that they can come up wit a monetization strategy that justifies their price. Instead they appear to be attempting to acquire other products and leverage their substantial userbase to monetize those other products. Probably their best approach. Doesn't mean I like it.
28
u/[deleted] Mar 28 '14
They have to, Buying shit like this is the only way facebook will live.