So the courts have ruled that Facebook is not worth US$15billion but “only” US$3.75 billion. Would any investor be willing to fork out this amount of money to take over the company, or buy some stocks? I think that prices for virtual commodities are always overrated. If you are an investor, you should seriously think about its inflated value.

In the case of Facebook, I know that companies seeking to buy shares look at its advertisement potential. When it comes to membership based websites, you need to show the number of members you have, traffic levels and the amount of time unique visitors are spending at the website.

However, investors are not users and they are not at the user-level. They do not know that even membership count is inflated. My friend and his friends have multiple accounts per person and when you advertise to a hundred members, you are actually doing so to about seventy members.

So Facebook is actually the same as other social website during the dot com boom. I really do not see anything special about Facebook that I have not used before in one social networking site or another.