Facebook’s CFO was recently seen in Dubai trying to raise capital.  Why you ask? It seems that Face is growing to fast and all that new hardware costs serious bucks.  Techcrunch has a great analysis of the issues facing Facebook.

The highlights are that Facebook has grown 118% in the last year!  To support these visitors, the company is spending $100M on 50,000 servers and another $120M annually additional staff.  Throw in another $100M for desks, computers etc.

Company revenues are $265M…but most of the international visitors don’t generate revenue.  But at the rate company is spending cash, they are going to run out money soon!  Compounding the problem is that ad-spending with dive in the recession next year, so now we are looking at reduced revenues.


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