Facebook Investor Says Company Worth Around $30 Billion, Still Undervalued

Peter Thiel, Facebook’s angel investor and board member — and top entrepreneur and hedge-fund manager — said today that Facebook is one of the “least overvalued or most undervalued” tech companies. And what is the valuation? Around $30 billion, he said.

Speaking at the TechCrunch Disrupt conference happening this week in San Francisco, he spoke more broadly about the state of technology and investing. A staunch libertarian futurist, he encouraged Silicon Valley to invest in technologies that can make the world a better place in the coming decades, noting that median wages had stagnated in the US for the last 37 years.

What about the Facebook movie, “The Social Network.” Interviewer Sarah Lacy noted that the trailers, at least, portrayed Zuckerberg as an evil genius. Thiel said that’s not how anyone who has worked with Zuckerberg “tended to view him.” However, he thinks there could be a positive side for the company from the Hollywood attention. Paraphrased, he said:

Silicon Valley is about positive sum game where all the stakeholders can benefit — founders, stakeholders and public at large. Hollywood is a zero-sum game where everyone is trying to stomp on each other. One very good thing about the move is that it encourages young Americans to think that they can start new businesses. The Wall Street movie was far more negative in the 80s, but encouraged people to go into Wall Street. If this movie gets more people coming to Silicon Valley and building companies, great.

Thiel is also launching a fund to encourage people to “stop out of school” to pursue a big-idea company.

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4 Responses to “Facebook Investor Says Company Worth Around $30 Billion, Still Undervalued”

  1. Tom Tunguz says:

    Facebook has the potential to exceed Google’s market capitalization by tapping into two much larger ad markets than the intent driven, direct-response market Google has captured. Those two markets are branding dollars and local ad spend.

    Today, the online advertising market is about $25B of which $16B is direct response and the remainder is display (loosely speaking). Facebook may not win a larger share of direct response dollars, but they may enable branding dollars to move online.

    In the offline world, display advertising is much, much larger than direct response. The TV ad market is $70B alone annually, not counting radio, print and so on. As time on the Internet increases, many are calling for a shift in ad spend from offline media to online.

    Because of its scale, Facebook can present a one-stop shop to many advertising agencies looking to shift spend from previously mass market TV to new media. Should this happen, a potentially equally large chunk of ad dollars may end up in Facebook’s coffers because like Yahoo, Facebook can provide the following

    A huge audience: largest photo & gaming, and 2nd largest video site on the web with the most amount of minutes of any website
    A gargantuan amount of consistently high quality ad inventory (16% of all display inventory according to eMarketer)
    Best in class user targeting and demographic understanding
    Multi-platform (gaming, photos, etc) and multi-environment (web, mobile, off-Facebook web) targeting
    Consistent reporting across all these media
    The other significant revenue driver that no one has discussed is Facebook’s enormous local ad opportunity – analyzed here. The local ad market is $133B according to eMarketer.

    To wit, Facebook quadrupled the number of advertisers on their platform last year, my guess is entirely due to SMBs moving to the platform. With the the rise of GroupOn (the fastest growing business in the world according to Fortune), the addressability of SMBs and their enormous advertising spend moving online, Facebook’s 150MM mobile users coupled to great demographic data might very well be another huge pot of gold.

    If Facebook can capture even 5-10% of either market, they would be generating between $6-10B annually at a huge CAGR which you could argue the public markets might value at crazy P/E ratios, maybe even the 95+ of the Chinese exchanges, in which case, Facebook’s market cap may approach or pass Google’s.

    Originally posted at : http://expostfacto.posterous.com/how-facebook-might-exceed-googles-market-cap

  2. No IPO Till 2012: Facebook Director, Peter Thiel: Tech News « says:

    [...] saying all along — no plans for an IPO anytime soon. At an event today, he pointed out that the company is worth over $30 billion. Thiel, who was extremely critical of the regulatory environment was speaking to Fox Business [...]

  3. Ric says:

    There is absolutely no way I would pick up their stock on a 15 billion valuation let alone 30. Boy, the bubble is BACK and bigger than ever!!!

  4. Миллиардом больше « inSocialPlay — блог об играх для социальных сетей says:

    [...] член его совета директоров, на конференции TechCrunch Disrupt оценил стоимость Facebook в 30 миллиардов долларов. Цифра эта, по [...]

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