Facebook could easily be worth $200 billion by 2015, says Wedbush analyst Lou Kerner in this clip.
Here’s how he gets there…
The Internet advertising market will be worth $110 billion by 2010.
Facebook will get 20% of all pageviews.
In media, “scale gets more than its share of spend,” so Kerner thinks its “conservative” to say that Facebook will get 20% of the advertising spend on the Internet.
Those ads alone put Facebook revenues alone at $22 billion.
Throw in ads off of Facebook and that’s another $5 billion in revenues.
Throw in another $5 billion in Facebook credits.
That’s $32 billion in revenues.
He figures 40% margins for a $13 billion profit.
Put a 16X multiple on that and you get…
…A $200 billion valuation.
So, who gets rich when Facebook is worth so much? Meet Facebook’s soon-to-be billionaires.
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