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Facebook-the land for billionaires

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Facebook creates a close online social network to all the users;as a platform,it also creates multiple opportunities for business and some of them have got great returns.

Well,that’s only showing how potential Facebook is.Now It’s about the time for Facebook to show its real value.By the IPO,Facebook is valued at USD38 per share,total up to more than USD 100 billion share capital,being the second largest IPO in USA IPO history if not mistaken.Furthermore,according to the report from CNNMoney,quite a number of individuals and institutions have earned billions from the IPO.

INDIVIDUALS

  • Mark Zuckerberg: $1.5 billion ($19.14 billion)
  • Dustin Moskovitz: $285 million ($4.8 billion remaining)
  • Peter Thiel: $848 million ($852m remaining)
  • Mark Pincus: $4.1 million ($158 million remaining)
  • Sean Parker: $38 million ($2.27 billion remaining)
  • Reid Hoffman: $412 million ($138 million remaining)
  • Jim Breyer: $125 million ($320 million remaining)

INSTUTUTIONS

  • Accel Partners: $2 billion ($4.72 billion remaining)
  • DST Global: $2 billion ($3 billion remaining)
  • Goldman Sachs (GS): $1.25 billion ($1.25 billion remaining)
  • Greylock Partners: $332 million ($1.06 billion remaining)
  • Elevation Partners: $202 million ($1.32 billion remaining)
  • Mail.ru Group: $857 million ($1.28 billion remaining)
  • Meritech Capital Partners: $306 million ($1.23 billion remaining)
  • Microsoft Corp. (MSFT): $287 million ($959 million remaining)
  • Tiger Global Management: $1.03 billion ($1.02 billion remaining)

The valuation of Facebook is based on a very high PE(around 105 times) which from my point of view,it’s not so reasonable.The search giant-Google was only valued at 80 times of PE when it’s IPO.Maybe because many investors also are the loyal users of Facebook and they may realize the importance of Facebook in their lives,they irrationally enlarge the potential of Facebook.It’s the same as a boy falling in love with a beautiful girl and so he couldn’t see any weakness of that girl.

Anyway,the first day of trading will be on in 12 hours.Let’s see who will laugh till the end.