Isn't the term "value" derived from how much a particular item is worth to someone else?
Having said that, I cannot understand why people say that "Goldman may know the shares are worthless but are hoping to profit from the deal". If people are willing to pay for it, it has value.
As far as Facebook's valuation, the old model of figuring out a company's worth by is revenue is not applicable. Why is a company worth $50b if it produces $2b in revenue? There is no guarantee that it will make even $1 the next year. Whereas, just because a company produces $1 in revenue does not make it worthless because whose to say it wont produce $2bln next year.
Having said that, I cannot understand why people say that "Goldman may know the shares are worthless but are hoping to profit from the deal". If people are willing to pay for it, it has value.
As far as Facebook's valuation, the old model of figuring out a company's worth by is revenue is not applicable. Why is a company worth $50b if it produces $2b in revenue? There is no guarantee that it will make even $1 the next year. Whereas, just because a company produces $1 in revenue does not make it worthless because whose to say it wont produce $2bln next year.