Yes, like everyone else I think Facebook is a well-done and valuable internet property. They’ve executed really well, managed to steal the thunder from Myspace, and are the darling of Silicon Valley.
But until they prove they can monetize their audience in a very powerful manner, how is a $10-$15 billion valuation justified even in these bubbly times?
While it wouldn’t surprise me, it’d really shock me if Facebook doesn’t take $500 million for 5% of their company. That is a sizable war chest that will give them a long time and a lot of money to play with to really see if someone can really figure out how to monetize a social network, or for Facebook to grow beyond what it is until really being the next Yahoo! or Google which people seem to think it can become. I’m still not sure we know yet whether Facebook can become a real internet superpower or not.