So when do I get my check from Facebook?

No surprise the big business tech news story today is Microsoft's investment in Facebook.  There is a lot of speculation on how this impacts Microsoft's ability to compete with Google.

Oh, and it also means that Facebook now how has a valuation of $15B. Given they made $30M last year that means ... Oh gosh you know what it means! The bubble is back baby!!!!  Start lighting up those cigars with hundred dollar bills!

While Facebook has some great technology, Microsoft is most interested it as an advertising platform, particularly overseas. The value that Facebook provides is in the personal data that its users provide.  But right now Facebook has 50 million active users -- meaning each is now valued at about $30 million. Oh sure, you have to look at the revenue stream that Facebook has from other sources, but still that is quite a price per user even if you quarter it to $7.5M to account for future users.

I truly believe that Social Media is a disruptive force, but I have to wonder if this valuation is sane. I keep thinking of all the "eyeball" talk that drove the valuations in the first bubble.

By the way Facebook owners, I am Facebook member. Do you think you guys could spread the wealth to the folks who made you successful? I have some cigars from 1999 that are just waiting to be lit up.

UPDATE: As the reader of our blog points out below my math is off. I am only worth $300 to Facebook. According to pundit John Dvorak that is still a high premium.