Comments on: Goldman’s Facebook coup http://blogs.reuters.com/felix-salmon/2011/01/03/goldmans-facebook-coup/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: MichaelHost http://blogs.reuters.com/felix-salmon/2011/01/03/goldmans-facebook-coup/comment-page-1/#comment-28046 Thu, 30 Jun 2011 02:47:04 +0000 http://blogs.reuters.com/felix-salmon/?p=6775#comment-28046 With the impending lawsuits where the chief of GS is facing charges of multiple counts of rape plus the launch of Google+ any major investments will be treaded on carefully, FB or not.

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By: Boyardee http://blogs.reuters.com/felix-salmon/2011/01/03/goldmans-facebook-coup/comment-page-1/#comment-22671 Tue, 04 Jan 2011 17:14:44 +0000 http://blogs.reuters.com/felix-salmon/?p=6775#comment-22671 Brilliant move by GS. Whether they profit or not from this deal, they are going to be telling existing (and prospective) clients that being a GS client means access to deals that are not available elsewhere.

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By: OneEyedMan http://blogs.reuters.com/felix-salmon/2011/01/03/goldmans-facebook-coup/comment-page-1/#comment-22629 Mon, 03 Jan 2011 18:16:28 +0000 http://blogs.reuters.com/felix-salmon/?p=6775#comment-22629 I’m surprised to hear that even their revenue is $2 billion.
Back in 2009 the word on the street was they had $500 million in revenue and were going to grow to $800 million (
http://www.businessinsider.com/how-does- facebook-make-money-2010-5)

I’m curious if there ever was a $100 million plus firm trading at 50 times sales that realized that valuation in future growth. I’m sure Goldman is investing with lots more information than I have, but it just seems unlikely that their future profits could justify this valuation. Again, I see why Goldman would want this toehold for fees and prestige, just as I understood that Microsoft wanted their toehold to lock out Google. Still, eventually they will want to sell these shares to someone who wants them for the NPV of future dividends and I don’t see how that person would pay this valuation.

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By: CDN_finance http://blogs.reuters.com/felix-salmon/2011/01/03/goldmans-facebook-coup/comment-page-1/#comment-22625 Mon, 03 Jan 2011 16:04:45 +0000 http://blogs.reuters.com/felix-salmon/?p=6775#comment-22625 You answered your own question – GS doesn’t give a hud about Facebook, it just wants the fees and to impress it’s clients. I think if anything this is another assurance that Facebook creators are about the $$$ and not providing a service… the fact that ANY publication would name Zuckerberg man of the year ever is disgraceful. I also think that this move will turn off a lot of people from Facebook who were thinking of joining (or giving a solid boot in the ass to those that were soon to quit the site anyway).

Also want to back up OnTheTimes in that Facebook has only turned a profit once, and it was on the order of $50m – all these investments to date have been to keep the company operating. Perhaps this big investment means that Facebook is planning a big development in 2011.

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By: lemarin http://blogs.reuters.com/felix-salmon/2011/01/03/goldmans-facebook-coup/comment-page-1/#comment-22622 Mon, 03 Jan 2011 15:54:29 +0000 http://blogs.reuters.com/felix-salmon/?p=6775#comment-22622 Felix, you’re way too conventional to understand the genius of this. This is two evil empires quietly merging into one: Goldbook will own both our individual minds AND our governments. This will be a self-reinforcing mechanism: Facebook will provide an informational edge to Goldman’s trading ops while Goldman will make sure that these nosy regulators never get in the way of Facebook’s plans to harvest humanity’s every thought.

IPO fees? That’s so 20th century.

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By: jporter http://blogs.reuters.com/felix-salmon/2011/01/03/goldmans-facebook-coup/comment-page-1/#comment-22621 Mon, 03 Jan 2011 15:02:56 +0000 http://blogs.reuters.com/felix-salmon/?p=6775#comment-22621 AOL 2.0

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By: OnTheTimes http://blogs.reuters.com/felix-salmon/2011/01/03/goldmans-facebook-coup/comment-page-1/#comment-22620 Mon, 03 Jan 2011 12:43:34 +0000 http://blogs.reuters.com/felix-salmon/?p=6775#comment-22620 Facebook isn’t earning $2B a year, that’s their alleged revenue. They are barely breaking even, which is better than losing money, so their multiple is better because now they actually have one (that will fall like a stone once their actual numbers are revealed).

It’s not clear that Goldman is investing their own money, the NYT says they will be offering shares to their high end customers, who couldn’t otherwise buy them. I wouldn’t be surprised if they package all the shares this way, as they will have a hard time getting the government to back up this bet. I do wish they would offer 2 or 3 year puts, though.

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By: maxxm http://blogs.reuters.com/felix-salmon/2011/01/03/goldmans-facebook-coup/comment-page-1/#comment-22619 Mon, 03 Jan 2011 10:47:15 +0000 http://blogs.reuters.com/felix-salmon/?p=6775#comment-22619 Interesting article. Very possible that it will go MySpace’s way, but as Sweetness2010 said, musicians are in desperate need of such sites.

http://www.reverbnation.com/#!/danzdma
http://www.facebook.com/pages/Danzdma/12 7509957294897?v=app_2405167945

Thank you :)

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By: HearMeOut http://blogs.reuters.com/felix-salmon/2011/01/03/goldmans-facebook-coup/comment-page-1/#comment-22616 Mon, 03 Jan 2011 09:37:39 +0000 http://blogs.reuters.com/felix-salmon/?p=6775#comment-22616 Goldman Sachs now is naming facebook.com best investment before it becomes an IPO, now who is on steriods facebook.com or Sachs. How can Goldman Sach predicta value, they have used bad judgment before. Who knows will facebook.com get so lucky or maybe facebook.com wants to go to China as well and show the chinese they can do it too. Just recently, facebook CEO is desperately looking ways to make more facebook money.

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By: Sweetness2010 http://blogs.reuters.com/felix-salmon/2011/01/03/goldmans-facebook-coup/comment-page-1/#comment-22615 Mon, 03 Jan 2011 08:05:35 +0000 http://blogs.reuters.com/felix-salmon/?p=6775#comment-22615 Facebook is likely to go the way of MySpace, its predecessor. An extremely popular fad…until someone comes up with something better and everyone leaves.
But I’m a musician and I really like Facebook to find more fans for my Soft Music
Thank You! http://www.bridgetmusic.com

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