Tag Archives: Goldman Sacks

What the Goldman Sachs Facebook investment really means

Alan Patrick sees through the hype around Facebook being “worth $50 billion”:

“The one sure thing you can tell from this is that Facebook clearly can’t self fund itself enough for what it needs, even on $2bn turnover a year.”

To put it another way: A web site which has 500 million users, 1/8th of the entire population of the Internet, doesn’t have a business model capable of supporting itself.