Facebook is reportedly looking for a $100 billion valuation when it IPOs. But, its current business doesn’t support that valuation. If you believe it’s going to be worth $100 billion, and eventually much more, you have to believe it’s going to make money from more than just ads.
The theory is that companies will come to depend on Facebook’s huge
user base, then Facebook will figure out how to “tax”, or make money off
those companies. Zynga,
for instance, built a huge business, and then one day Facebook said,
give us 30%. In theory, F-commerce, or Facebook Commerce was going to be
another taxable business. It isn’t.