Sunday, July 29, 2012

On Facebook

I am not an expert, but people ask me to talk about Facebook's business. Here is a silly answer. Say Facebook has 1B users and each is able and inclined to buy a single share of Facebook for USD 40, a onetime transaction, no annual fees.  That is 40B dollars that Facebook can invest, and using what private hedge funds "guarantee" --- 3% of free spending money after maintaining capital, adjusted for inflation --- have 1.2B dollars of spending money per year, for perpetuity! You can maintain a decent Engineering and Infrastructure operation for that budget. Make those shares non-voting. 

4 Comments:

Blogger vignesh said...

Does Facebook do anything except social media business?

8:59 PM  
Blogger Kyle Smith said...

It's really been years since facebook started and they are really getting popular each year. Many has been member of the site and business have been in facebook itself and some people are also getting scammed.

10:03 PM  
Anonymous thereal said...

this is kinda interesting

6:54 AM  
Anonymous video search engine said...

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5:49 PM  

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