Enough with the Facebook/Friendster analogies...
I get annoyed when i read articles these days that try to compare the facebook to friendster.. Here's one for instance.
Anyone who has used facebook knows that it's no friendster. As jonathan abrams has alluded to, friendster's hugest problem was scaling the site properly. the facebook has done it extremely well, and on top of that, they have made their site a utility rather than a flashy new media site..
In 5 years, i predict that the facebook will be a public entity, and easily a multi-billion dollar company... and that valuation will be justifiable based on actual business fundamentals, not on hype.
and by the way, if jonathan had sold his company for $30 million in stock, it would NOT be worth a billion dollars as that fast company article mentioned. Someone correct me if I'm wrong, but the valuation google was putting on itself back then was around 10 billion. Ignoring any dilution from their public offerings, that would place the value of that stock at around 400 million. Not chump change by any measure, but can we please stop throwing the billion number around just to make some sort of sensationalistic effect?