May 15 - Facebook may be a social network but its also very much a business, and now that its going public, the company will be under the microscope of investors. Bobbi Rebell reports.
The Facebook public offering has investors clammering for a piece of the action. But some are concerned that Facebook has not yet figured out a way to make money from the increasing number of users who access it from mobile devices. Another concern.. revenue growth from online advertising has slowed in recent months. Jonah Peretti is the founder and CEO of Buzzfeed.com and a co-founder of the Huffington Post. SOUNDBITE: JONAH PERETTI, FOUNDER AND CEO OF BUZZFEED.COM, CO-FOUNDER HUFFINGTON POST, (ENGLISH) SAYING: "When you're looking after the IPO, you look at these traditional business metrics you look at the spreadsheet and you say, okay, what is this company worth? If you judge it that way, you might have a more negative view." At the midpoint of its expected price range, Facebook would be valued at 99 times earnings. Compare that to Apple, which went public in 1980 and had a valuation of 102 times earnings. And Google- back in 2004, with 218 times earnings. So relatively speaking, Facebook may not be as speculative as it may seem. And, as Peretti points out, it is unique. SOUNDBITE: JONAH PERETTI, FOUNDER AND CEO OF BUZZFEED.COM, CO-FOUNDER HUFFINGTON POST, (ENGLISH) SAYING: "It's a phenomenal company when you look at the level of engagement and there is nothing to compare it to, nothing has ever had that level of engagement before. And so I think that they have a very bright future and that people haven't fully understood the impact they're going to have on the internet and on business and on media." Facebook will begin trading on the Nasdaq under the symbol FB on Friday. Bobbi Rebell, Reuters.