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Facebook worth US$6bn claims analyst

By Matt Chapman
Aug 6 2007 6:58AM
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The Facebook social networking site could be worth as much as US$6bn, according to Bear Stearns analyst Robert Peck. Peck made his claims in a note to clients, based on the company's current revenue and predicted future earnings.

Facebook worth US$6bn claims analyst
The analyst expects Facebook to generate US$140m in revenue in 2007, with that figure jumping to US$358m in 2008.

By 2016 Peck predicts an explosion in revenue up to US$6bn, generating US$2.3bn in pre-tax earnings.

Those calculations form the basis of his advice that Facebook is worth "as much as US$5-US$6bn".

Despite already having a $1bn bid turned down, Peck expects Yahoo to make an improved offer if it doesn't want to "risk becoming a marginal player in this rapidly growing space".

And he believes a significantly-improved offer would secure the site for Yahoo.

"When it comes down to it, we think the price tag is the ultimate factor for a transaction to materialise," he said.

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