Browie

Well, according to Microsoft and Facebook they are worth that much. Just a few days ago Microsoft bought a slice of Facebook. Oddly enough, I saw this story in the USA Today at my Hotel room.

Funny how I’m at a conference away from my computers and I still see the stories that I’m interested in. There was another article in the USA Today or New York Times, I forget, about a retired gentleman making $100,000 from putting google adsense and advertising on his handyman website.

Back to Facebook….. how did they come up with $15 Billion? I’m not sure but Microsoft bought 1.6% of the ownership of Facebook. Well that’s not very much is it? Let’s take 1.6% of 15 Billion and see what we get (number crunching….. tick toc tick toc) $240 Million dollars. WOW, can you believe it? Microsoft gives you $240 million and that’s only, supposedly, 1.6% of your company.

Either inflation is on the rise or Facebook is just that much hotter right now than Myspace. Why do I say that? Two years ago in 2005, News Corp. bought MySpace for $580 million dollars. If you’re keeping up with the math here that would only be about 3.8% of what Facebook is worth. Looks like News Corp. got a deal.

Anyway, later in the article it mentions that Facebook may go public within two years. If you’re an investment guy you may want to keep watching the news on Facebook and see if you can get in on the next GOOG.