This week, Facebook raised $200 million injection of capital from a relatively unknown Russian investor Digital Sky Technologies (DST), which has a few related properties. This investment is an exchange for preferred stock, representing a 1.96 percent equity stake at a $10 billion valuation, according to a Facebook press release.
I often get asked how Facebook could monetize, my take is that they are first focused on global growth they have aprox 200 million registered users (keep in mind that’s not the same as active) and need to perhaps double that amount to reach the population of larger websites (stats here).
I went to the SF Bloomberg TV studios for a live 5:45am pacific broadcast to accommodate the east coast market, to discuss my take, which you can watch. To watch the video, click to this page (or on the image above), then go to “Video” tab then the “Watch” icon.
Although I’ve been on many video podcast, this was my first interview on life TV, and as you can tell, I’m a bit awkward and very nervous. Being in a TV studio is so different than doing an in person interview as there’s no one in the room, I can hear the anchor via a small earpiece, there’s a very slight delay, I can’t read her body language, I didn’t know what she looked like till I saw the replay at home, and the only thing I can see is a little red dot engulfed by bright white lights. To overcome my nervousness, I wrote down my talking points the night before and rehearsed many times, a few awkward sentence here and there, but hey, it was a good experience, and I hope to do it again.
Back to the topic: Facebook’s future. I’d love to hear from you, what do you think they’ll do with this new funding, and how do you think Facebook will ultimately monetize?