Facebook Value

Companies such as Microsoft and Google are interested in investing in the social networking site Facebook. While this is still in the early stages, Microsoft is reportedly considering investing $300 to $500 million for a 5% stake of Facebook. Facebook is seeking a minimum value of $10 billion, and there has been enough interest to go as high as $13 billion from investors. Facebook's only annual revenue is from newly established advertising relationships. Facebook continues to grow and add features making it more desirable to investors. How long until a more popular social networking site takes over or at least provides competition? I think Facebook will remain popular for a while because everyone is on it. It's difficult to get people to leave for another site when they have already developed profiles, photo albums, and have many friends on the site they are already on.