Facebook Has Scads of Cash: Leak

Source reveals finances to Gawker
By Evann Gastaldo,  Newser Staff
Posted Dec 15, 2011 11:29 AM CST
In this July 6, 2011 file photo, Facebook CEO Mark Zuckerberg smiles during an announcement at Facebook headquarters in Palo Alto, Calif.   (AP Photo/Paul Sakuma, File)
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(Newser) – Facebook is pretty much made of money, a knowledgeable source tells Gawker. The site has raw numbers as of September, which Ryan Tate calls “the Silicon Valley equivalent of hard-core pornography,” and they show that the social networking site will probably earn almost $1 billion in profit this year. That’s more than double last year’s reported profits and quadruple the year prior’s. According to the source, Facebook had the equivalent of $3.5 billion in cash as of September.

The numbers are “even more staggering than we expected,” showing Facebook’s stash of cash to be comparable to much more established companies including 3M. Companies like Apple and Google may have a lot more money than Facebook, but others should certainly be jealous. Users may have assumed Facebook would be swimming in cash, but Tate points out that even wildly popular sites, such as MySpace once was, prove that “having tons of users isn't the same thing as having tons of money." (Read more Facebook stories.)

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