I joined Andy Dean on his radio show, "America Now with Andy Dean," once again for a spirited half hour of discussion and debate about the mighty Facebook IPO filing. We were able to hit the important highlights, and I was glad I could make one of my favorite points about Facebook. And that is: Facebook has built what may be a $100 billion valuation (although it might not go public at quite that high, high level) on what it is essentially the donated labor of 845 million active users.
What does that mean? Simple: You update your status, you post pictures and videos, you play Zynga games, your hit that Like button across the Web — and you do this repeatedly and often, enabling Facebook to capture this activity and sell it to advertisers. No wonder the company has been so reluctant to do an IPO — it's making billions off free content and doesn't need to actually pay the public anything! Unfortunately, the company now has so many private shareholders that the SEC is effectively forcing Facebook to go public (the SEC won't let you amass private shareholders forever).
My latest appearance on "America Now with Andy Dean," this time to talk about yesterday's relatively positive economic news, which caused the Dow to rise almost 500 points. As always, a lot of fun to go back and forth with Andy and a good chance to summarize my DeBord Report post from Wednesday about the eurozone crisis, central banks, the impending jobs report, housing data, and whether China will be able to hold its own economy together.
I'm on at about the 31:00 mark. Enjoy!