We all know about facebook, which has become the leading social network ahead of rival Myspace, and well has millions of users online 24/7 and ever increasing due to it’s innovate 3rd party app integration and variety of features.
But here’s the scoop, millions of users upload their apps, Pictures and digital narcissism everyday round the clock, and now facebook its speculated to have burning out it’s financial resources quickly.
This week, the TechCruncher has reported, Facebook chief financial officer Gideon Yu is in Dubai, "possibly" discussing fund raising options with Dubai International Capital, the private equity firm owned by the city’s ruler – who also happens to be the Prime Minister of the United Arab Emirates.
It is said that facebook is spending well over a million dollars a month(that’s too much fro social networking site!), for coughing up the “ELECTRICITY” bills alone. And further added $500,000 for bandwidth.
Zukerberg and co have said that terabytes of info get uploaded everyday.
Here’s the official statement from the company:
As a matter of policy, we don’t comment on market speculation or rumor about our finances. Facebook is well-positioned both financially and within the market and any thoughtful attempt to model our business should reflect that. Our advertising business has great depth and breadth. While no ad business can ever be 100% recession proof, the breadth of our advertiser base and the innovative products we offer bolster our position in the current cycle. We’ve also been closely managing the business so we can continue to hire great people and scale. While we’ve achieved certain milestones, we are deeply committed to even greater business success in the future.
Well it is said that facebook must do something quickly to manage its assets which are quickly burning up, indeed also speculated that internal servers are being build up to reduce cost for the future, to prevent it’s devaluation compared to the $15Billion market value last year.
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