2008 Woodie Awards
Shenanigans: Facebook is power
Alex Garlick
Issue date: 11/1/07 Section: Opinions
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Every year in May at commencement, graduates' heads fill with enthusiasm, excitement, fear and a vicious hangover as they prepare to enter "the real world." Invariably, a speaker delivers a message to the graduates regarding the possible impact of this generation, and how it can make a difference in the world at some point. That time for our generation is now, and I will guarantee you will be a little surprised at the source of this major social, and economic, impact - Facebook.
You may have thought Facebook's impact was limited to job offers being rescinded when potential employers found out about some "naked runs" from freshman year, but in fact, Facebook is making some serious waves in the business world.
Last week Microsoft bought 1.6 percent of Facebook Inc. for $240 million. For those of you not preparing for a Goldman Sachs interview right now, that puts the overall valuation of Facebook at $15 billion. Mark Zuckerberg, the Harvard dropout who started the social network in his dorm room a few years back, still holds 20 percent of the stock. Running those figures through my abacus I figure Zuckerberg is in line for a $3 billion payout in a couple years when Facebook goes public.
Why is this important to us? It shows the power our generation is capable of wielding in the marketplace of tomorrow. Microsoft is valuing Facebook's estimated 50 million users at $300 a head. Bill Gates and the boys in Seattle see dollar signs from the hours you spend looking at your Proctor Crush in a bikini on spring break, or unsuccessfully searching for "Nick Janson" just one more time.
This enormous price tag has inspired more head scratching among industry insiders than the unveiling of "Solid State Change" at the new Hillcrest building this year. Pundits claim that Microsoft is overpaying for its share of the advertising potential of the site. They also claim that Microsoft is just desperate to score some points in its ongoing battle with Google.
You may have thought Facebook's impact was limited to job offers being rescinded when potential employers found out about some "naked runs" from freshman year, but in fact, Facebook is making some serious waves in the business world.
Last week Microsoft bought 1.6 percent of Facebook Inc. for $240 million. For those of you not preparing for a Goldman Sachs interview right now, that puts the overall valuation of Facebook at $15 billion. Mark Zuckerberg, the Harvard dropout who started the social network in his dorm room a few years back, still holds 20 percent of the stock. Running those figures through my abacus I figure Zuckerberg is in line for a $3 billion payout in a couple years when Facebook goes public.
Why is this important to us? It shows the power our generation is capable of wielding in the marketplace of tomorrow. Microsoft is valuing Facebook's estimated 50 million users at $300 a head. Bill Gates and the boys in Seattle see dollar signs from the hours you spend looking at your Proctor Crush in a bikini on spring break, or unsuccessfully searching for "Nick Janson" just one more time.
This enormous price tag has inspired more head scratching among industry insiders than the unveiling of "Solid State Change" at the new Hillcrest building this year. Pundits claim that Microsoft is overpaying for its share of the advertising potential of the site. They also claim that Microsoft is just desperate to score some points in its ongoing battle with Google.
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