Microsoft-Facebook Investment Talks are Underway

According to Fortune, Mark Zuckerberg was spotted walking through Seattle on the way to a meeting with Microsoft executives today. Perhaps he’ll walk out of there with a check for $500 million! That’s a check that I’d like to walk out of any meeting with. With a lofty valuation of $10 billion, one has to wonder if we are in the middle of a Facebook bubble. My thoughts? Yes we are.

Social platforms are indeed the wave of the future. Social platforms will also be limited to larger social networks for the next 12 months due to the development cost. Additionally, developers and advertisers aren’t going to want to develop for a ton of platforms, they will only want to develop for social platforms that provide the greatest impact. While Facebook may currently be the only social platform and will continue to be the leading social platform, it doesn’t mean there isn’t room for competitors.

The real question at hand is what is the actual value of social platforms or the social operating system? Nobody knows and that’s why Facebook is able to pull is some lofty valuations. Perhaps years down the road Facebook will become the next Microsoft. For the time being though, Facebook has yet to release any monetization tools that warrant their sky high valuation. Do you think Facebook will be worth 10 or even 15 billion dollars?