Could we all please have a dose of reality for just a moment here? If a company does not have a stock, and it is still taking venture capital funds, then there is no way it is worth $33 billion, and its founder isn’t worth $6.9 billion.
While I normally avoid these sorts of stories where people are running around obviously finding some bizarre way of distorting reality, all of the hoopla about about Facebook’s valuation, and in turn the valuation of Mark Zuckerberg has just been enough to make my head explode.
Forbes is famous for publishing lists of the wealthiest people and companies, but every once in a while you have to wonder if they’ve lost their collective minds. The latest example of this is that in its latest version of the list, Mark Zuckerberg is now worth $6.9 billion, tripling his value from last year, and even passed Apple CEO Steve Jobs on the list.
Here’s a small difference for you, though: Jobs actually has assets to back up his value.
Facebook has taken as much as $120 million in venture capital this year, an interesting thing for a company supposedly worth $33 billion to do. Wouldn’t they have that laying around in a sock drawer?
As always these numbers are based on “potential” earnings. Well, you know what, going by that theory, I think I have the potential to earn $7 billion, take that Zuckerberg! Yes, I know Forbes has some convoluted formula it uses, but come on, this is all based on what they think Facebook could make off its 500 million members, not what it is actually already making.
Sure, Facebook has some money, as does it founder, but it is nowhere near the amounts everyone is running around crowing about. Get with it folks, and use the common sense you were born with to realize these numbers are nothing but empty figures on a spreadsheet.
What say you? Could Facebook ever hope to reach this sort of valuation for real?