Is Facebook Worth $15 Billion? Not Anymore

Facebook used to have a valuation on $15 billion based on Microsoft’s investment in the company. According to Mike Arrington the new valuation is probably in the $3 – $4 billion range. According to Arrington and now Peter Kafka at Silicon Alley Insider has reported similar rumors.

One financial wealth manager is looking to unload some shares and apparently some Facebook employees are also looking to sell shares. From the sounds of it, some shareholders have enough shares that they’d be satisfied exiting now. These rumors also may make a potential acquisition more attractive to a large company. Mark Zuckerberg isn’t looking to sell though according to other sources.

While Facebook’s current cash flow doesn’t justify a $15 billion valuation, the launch of their platform payment system could easily justify a higher valuation. Do you think Facebook’s new payment system will help boost their cash flow substantially overnight?