Facebook: A Fate More Similar To Yahoo Or Google?

by admin

Editor’s note: Guest author David Cho is CEO and co-founder of Sidebark, the private photo and video sharing service. Prior to founding Sidebark, he was a leader in Bain & Company’s digital media practice.

How much more valuable do you think Facebook is than Yahoo? Let’s say I gave you 1% of Facebook’s stock. How much of Yahoo would I have to give you to part with that share? 5%? 10%? More? (Or would you just move to Singapore and renounce your U.S. citizenship?)

What about Google stock? Would you make a 1% for 1% trade? What about 0.5% of Google for your 1% Facebook stake?

Well here’s what the stock market thinks: Based on market cap, Facebook is closer in value to Yahoo than it is to Google. After sliding under $20 per share, just two and a half months after going public at $38, Facebook’s market cap hit $45B, closer to Yahoo’s $20B than Google’s $210B.

source: http://feedproxy.google.com/~r/Techcrunch/~3/lBxtcueVHIE/