Yahoo: Is Facebook Waiting Too Long to Sell?
As Facebook's mastermind, Mark Zuckerberg is sitting on a potential gold mine that could make him the next Silicon Valley whiz kid to strike it rich.
But the 22-year-old founder of the Internet's second largest social-networking site also could turn into the next poster boy for missed opportunities if he waits too long to cash in on Facebook Inc., which is expected to generate revenue of more than $100 million this year. The bright outlook is one reason Zuckerberg felt justified spurning several takeover bids last year, including a $1 billion offer from Yahoo.
Web 2.0 startups have emerged as hot commodities because they are drawing more people away from television, newspapers and other media traditionally used for advertising. Online video channels and socials networks, a catchall phrase attached to sites that enable people with common interests to connect and deepen their bonds, are particularly hot.
In 2006, the average price paid for a startup funded by venture capitalists rose 19 percent to $114 million. That was the highest amount since the dot-com frenzy of 2000 when the average price of venture-backed startups peaked at $337 million, according to data from Thomson Financial and the National Venture Capital Association.
But no startup is stirring more takeover chatter than Facebook, which began as a site exclusively for college students before opening up to high school students in 2005 and finally accepting all comers last fall.
The site now has nearly 17 million registered users, most of whom fall into the under-35 demographic prized by advertisers. And Facebook gives advertisers plenty of marketing opportunities because its users churn through about 1 billion Web pages per day.
Although Zuckerberg dropped out of Harvard in 2004 to move Facebook to Silicon Valley, he still leads the ascetic lifestyle of a college student even as he runs a business with 200 employees.
Zuckerberg says he keeps little more than a mattress in his apartment, which is located just a few blocks away from Facebook's office. The proximity allows him to walk to work every day, usually wearing Adidas sandals ideally suited for lounging around a campus dorm.
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