Karela Fry

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How much are you worth?

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Bloomberg reports:

Facebook Inc. (FB), the social-networking website that in eight years changed the way the world communicates, filed to raise $5 billion in the largest Internet initial public offering on record.

Facebook, whose meteoric rise spawned an Oscar-winning film and captivated Wall Street, today named Morgan Stanley as the lead underwriter on the IPO, while reporting a 24-fold increase in sales over the past four years to $3.71 billion in 2011.

The planned IPO dwarfs Google Inc. (GOOG)’s 2004 offering and tests whether social-networking providers deserve valuations that surpass such established companies as International Business Machines Corp. (IBM) and Procter & Gamble Co. The Menlo Park, California-based company is considering a valuation of $75 billion to $100 billion, two people with knowledge of the matter said last week.

Co-founded in 2004 by then 19-year-old Mark Zuckerberg, Facebook has grown into the world’s dominant social-networking site, squelching competitors such as MySpace Inc. with its more than 800 million users.

Now when there is a valuation of a social media site, it is actually a valuation of you and your worth to advertisers. So now a simple computation tells us how much each of us is worth: about $100 billion / 800 million, ie, just USD 125! That is just 10% of the company, so are you potentially worth USD 1250? Probably a bit more, if you take into account that WPP spends USD 200 million on Facebook but USD 1.6 billion on Google. So your net worth through these two channels together should be about USD 11,250.

Humbling.

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Written by Arhopala Bazaloides

February 2, 2012 at 4:17 am

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