Added Value Facebook IPO

Facebook, the most popularised social networking application, provides the foundations for A Small World. Its an exclusive, by invitation only, networking application for the rich and famous.

It is looking to launch an IPO to raise between $6 and $8 million dollars to fund growth, albeit at a much smaller rate that the social networking sites of the mass market. Given the current turmoil in financial markets and the credit crunch management decided to delay the European IPO instead focus on advertising revenue from the worlds most luxurious brands.

They believe that each of their current 265,000 members are worth more than the $300 (as proposed by mass market social networking sites), in terms of advertising spend, which gives an implied valuation of at least $78 million dollars. Who knows exactly how much it is worth and maybe we should all just sit tight and see what happens if and when Facebook launches an IPO?