Facebook Valued at $6.5 billion

Facebook has been valued at $6.5 billion, following valuation for its common shares on Monday, says Reuters. This makes the $580 million that Rupert Murdoch spent on Myspace seem like a bargain, no matter how trashy the platform has become.

Social Networks are officially big business, and the figures here are not to be scoffed at. Bloomberg says that “According to Marc Andreessen, who sits on Facebook’s board, said the company should post at least $500 million in revenue this year.”

That means, going by GDP, that Facebook is worth the equivalent of Malta and is twice as profitable as South Africa.

That is crazy when you think about it. An ethereal network of people connected by nothing more than electricity, is valued at twice the GDP of the largest country in Africa. Is that right? Is it fair?

Russia’s Digital Sky Technologies seems to think so, and will buy $100 million worth of shares in Facebook, and this is on the back of a $200 million investment in May, where they valued the company at $10 billion.

Reuters says that:

Facebook CEO Mark Zuckerberg said he was pleased that the price that DST is offering is “much greater” than the price his company originally considered last fall in a similar program to allow employees to cash out their shares.

Pleased? I’d be ecstatic!

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