Could Facebook Really Be Worth Upwards of $75 Billion?

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OCFRED

All I've seen Facebook do is contribute enough to social upheaval in a couple years that some continents are being set back to the Victorian Era. Most of the user data is disingenuous and many causes just commercial hype and wastes of time;I'll Bid one dollar Bob.

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immersive

Well if you google how many active users facebook has you come up with a number of 800 million. So divide 75 billion by that 800 million and that makes everyone of that 800 millions information worth only $93.75

So pay a private detective thousands of dollars to find out everything about someone or pay facebook $93.75 and go back at less 3 years on most people.

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Ghok

Facebook has a very captive audience that it knows everything about, and in key demographics.

Advertisers really like that. In fact, it's kind of their dream come true. Which is why we're saying such crazy numbers. Is it worth that 75 billion? Not in my mind, but it's worth what people are willing to pay, and until someone else can do as good as job, Facebook is going to continue to be worth crazy numbers.

I don't really like Facebook, but (for the most part!) it only knows what you tell it. So I don't really mind it, and it's a good way to stay in touch with certain people. If people want to trade their privacy for whatever Facebook gives them, they're welcome to. Facebook knows my age and gender, the city I live in, and not much else.

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unsunghero225

I have a hard time believing its worth 75 billion. I mean who decided how much the "data" was actually worth? And if they had a fire sale on said "data" do you really think they'd rake in 75 billion for it?

Personally I dont think so, but I guess thats why I'm not a finance guy

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Vernak

Paul,

The title says billion and then you swap to million and back. It is not a huge deal but needs a typo edit.

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Paul_Lilly

$75 billion is correct. Thanks for the heads up.

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Supall

Where does Facebook make its money again?

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Cregan89

Contrary to the conspiracy theories posted by the commenter's on MaximumPC, Facebook doesn't make money by literally selling your personal information as that would be illegal.

They make money from those six little advertisements displayed on the right side of the web site. Pretty much exactly the same way that Google makes money by displaying advertisements beside your web searches.

What makes Facebook's advertisement model so effective is that they offer the unique ability to direct your advertisements to a very specific demographic (age, gender, location, personal interests, education, etc.). It's important to realize that this doesn't in any way mean that a company can direct ads or get information about an individual person.

For example, since I'm attending a specific school for software engineering, most of the advertisements I see are related to various jobs conferences going on at my school. I've actually been informed of some very useful things through Facebook advertisements. This is exactly what gives Facebook ads such a higher click-through rate than Google search ads for example.

All of the free services that Facebook offers are simply ways to get more users more invested in using Facebook on a regular basis, and therefore displaying more total advertisements. You can read up on it here: https://www.facebook.com/advertising/
I've actually used Facebook advertising before to show my resume to people working in the software engineering field in my area. It works amazingly well.

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Neufeldt2002

Everything you post, private or public, anything that you click "like" using the facebook like button, or any web page that has facebook login or like button (which track you even if you don't use them or have an account with) gets harvested for data that can be sold. Plus ads.

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Danthrax66

Selling your information, letting other companies access your account via facebook games. In social media you are the product.

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bautrey

Ads maybe? I know I haven't sent them a cent.

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hastyscorpion

If you aren't paying for a product or service, you are the product being sold.

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Zoandar

And sometimes, even when you are paying. Well said!

@cregan89 " Facebook doesn't make money by literally selling your personal information as that would be illegal." Thanks for the belly laugh.

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