According to Mashable, Classmates.com is filing for an IPO. Their reported offering will be worth $125 million. They currently have 50 million registered users with over 5 percent of those members having paid subscriptions. One thing I get from this is that Classmates either has a horrendous monetization strategy or Facebook really does have way too much hype. Next year Facebook will cross the 100 million user threshold and will continue to grow.
Based on a comparable company (Classmates.com), this would value Facebook at somewhere around $250 million. We all know that Yahoo offered $1 billion, but we should view this from the perspective of a comparable company when giving consideration. Their momentum is the sole reason that their valuation is so high. Even so, it seems like the $6 billion number that many in the industry have been throwing around is completely ridiculous. That number is based on Facebook going head on with Google by entering the people search market. At this point it is all speculation. Additionally, Facebook is going to have to launch their own application ad network soon because they now already have 5 or 6 serious competitors.
One thing is for sure: Facebook has some serious work ahead in the coming years. If they plan on taking Google on (which many are predicting), they are going to have to acquire significant resources. While many of us love to provide support to Facebook, a little bit of reality is nice once in a while. I think the offering price for Classmates.com should be one of the things that provide it.