Facebook IPO reaches new low
2012-08-17 17:45:08.93707+02 by Dan Lyke 0 comments
Facebook Hits Record Low as Insider Stock Sale Lock-Up Period Ends: Columbine was ranting on Twitter about this, but: yeah, the Facebook IPO wasn't about "let's raise capital to create a better company", it was about "let's cash out". See also Zynga and Groupon. If you thought you could make more money by selling to other suckers, more power to you, but here's the thing...
All sorts of web hosting companies have been trying to make personal web hosting profitable. Many ISPs provide blogs with your DSL line. Bluehost will sell you hosting for < $4 a month. There are a few jiggling things around bit with feed readers, but between blogs and feed readers, you can create Facebook in a distributed fashion.
Facebook says revenue for Q2 2012 was $1.184 billion Facebook claims 800 million active users. So their revenue is a buck and a half per user per quarter, or less than $.40/month.
Facebook's revenue for letting you publish a blog and selling ads to pay for it is less than a tenth of what Bluehost is charging. Stock, anyone?