In case it wasn’t clear enough
by Ashok Nayar
2007 Revenue: $150 Million
2008 Revenue (projected): $300-$350 Million
2008 Capital Expenditures: $200 Million
2008 EBITDA: $50 Million
2008 Cash Flow (EBITDA- CapEx) = (-) $150 Million
Zuckerberg’s going for broke with this move. With a valuation of $15B, they’re working with a 300X EBITDA multiple, which they’ll never get. The only he really could have cashed out is selling to the company, or going public, which doesn’t seem promising. Wall street never was a fan of companies that was losing money.