The last two weeks have been incredibly busy at Greycroft – we had our annual CEO Summit at the Bacara Resort in Santa Barbara, we closed two new investments, and I was invited to go on Bloomberg television twice to discuss the IPO market (links here and here).
I have been checking the stats for these clips every few days and to date they have been watched 766 times. Sure, many of these views were from my mom, but nonetheless I am pleased that so many people tuned in. At the moment the clips have more views than John Battelle (CEO of Federated Media) and Zorik Gordon (CEO of Reach Local). However I am still 94,000 views short of Mr. T talking about his gold chains.
Anyway, while they asked me about LinkedIn and Zynga, the question that everyone is really wondering is, “If Linkedin is worth $10bn, and Zynga is worth $20bn+, then what is the value of Facebook?”
There is speculation that Facebook may be the largest IPO of all time, and even in the private markets Facebook is already one of the world’s most valuable companies. It is amazing to think about how in such a short time Facebook has become a global brand and a product that is used by 1/10th of the world’s population on a regular basis.
I had dinner recently with one of the early employees at Facebook, who pointed out that during the Super Bowl, Facebook’s traffic took a 15% dip, only to spike back up during the commercial breaks. This put it in context for me: the Superbowl audience is only a small subset of overall Facebook traffic.
I think Facebook’s ultimate market value can swing one of two ways. People may look at it like a media company, which means that the revenue potential is bounded by the $20bn spent every year on online display advertising. In that case it would be a smaller company than Apple or Microsoft. On the other hand, Facebook may be looked at as the connective tissue of the human race, the source of online identity, and the engine of a new digital economy. I don’t know how to value the second scenario, but it is a big number. And potentially it is big enough to make 27 year old Mark Zuckerberg the richest person in the world.