The Real Facebook Effect

Unless you have been under a rock the past few days, you heard about Facebook’s long anticipated S1 filing.  It’s hard to go anywhere in the Valley without hearing the buzz.  Readers of this blog will recall that I had written a post during Summer 2011 substantiating a $100B and perhaps even a $200B valuation for the company.   In retrospect my projected revenue and EBITDA numbers are surprisingly quite close to Facebook’s actual numbers from their IPO.

However, amidst all this buzz, you may have missed the “rising tide lifts all boats” effect as news of Facebook’s offering led to double digit increases in the valuations of Zynga (ZNGA) and LinkedIn (LNKD).

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