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Facebook worth USD6bn, says Bear Stearns analyst
[MarketClusters - 03 Aug 2007]

Facebook could be worth as much as USD6bn and could generate sales of USD6bn by 2011, predicts Robert Peck of Bear Stearns. The analyst estimates that the social network site had USD140m in revenues so far this year, predicting sales of USD358m for 2008 and EBITDA earnings of USD2.3bn by 2011. He adds that Yahoo! could be a potential buyer as it is eager not to miss out on the networking phenomenon. Facebook turned down a USD1bn offer from Yahoo! last year, and has denied any takeover rumours, or speculations over plans for an IPO. According to Facebook director and investor Peter Thiel, the site could fetch as much as USD10bn in a sale.

Peck's announcements come as the much-hyped site is attracting negative press attention. While its founder and CEO Mark Zuckerberg is facing a lawsuit - which he seems set to win - over copyright claims, Facebook has suffered from bugs that violated members' private pages, been accused of putting its members at risk of sex offenders, and seen employers across the world blocking work access to the site. Last week, Facebook also banned the 'Audio' music application for allowing the uploading and sharing of illegal music tracks. Forward to colleagues

Related Web Links
03 Aug 07 News feed Analyst values Facebook at $6 billion The Inquirer Headlines
05 Aug 07 News feed Facebook worth US$6bn claims analyst iTNews Australia
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