In case it wasn’t clear enough

by Ashok Nayar


In case you didn’t already realize that Facebook isn’t worth the equivalent of General Motors in terms of market cap, their recently leaked finances should put things into perspective:

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.