News making the rounds today that trendy college social networking site of the moment Facebook passed up a $750 million dollar offer and is looking for Skype like money of $2 billion:

[Facebook] has become the seventh-most heavily trafficked site on the Internet, according to market researcher comScore Media Metrix. It racked up 5.5 billion page views during the month of February, the latest month for which complete data are available. That’s more page views than the Web sites of Amazon.com (AMZN), Ask.com, or Walt Disney (DIS).

The only thing worse than allegedly turning down $750 million would be them actually getting what they are holding out for ($2 billion). Somebody, anybody, please tell me how a site with 5.5 billion page views is worth $2 billion?

Is this site making over 100 million a year profit? If they were clearing that much than maybe they could look for a billion or more. They aren’t an established VoIP player like Skype (which just passed having over six million concurrent users), so where is the Facebook monetary value here? Is it all the college demographic which admittedly is one advertisers lust after? What kind of financials justify this asking price? Just amassing page views doesn’t make something worth billions. I’ve never used Facebook, I’m not in college, so I don’t get this one at all. Maybe I’m missing it entirely.

Last time I heard social networking site Friendster was still on the block too and dropped its price to $50-100 million. Is Orkut’s heart start still beating? MySpace is doing great but are they generating lots of money or just having tons of visitors rolling through the turnstiles?

It really worries me when the main selling point is “look at how much traffic we have” — there just has to be more. You can’t eat traffic numbers.

Update 4:24pm PST: Rafat writes: “What I do know, from my sources, is that Facebook closed on a “huge round” of funding last week. So I would say the acquisition part is off the table, for now. BW’s $2 billion figure is at best, hearsay, and at worst, media manipulation.”

• Friendster still overpriced at $50 - $100 million range
• Smoking the $3 billion dollar Skype pipe
• MySpace not so good enough for ad space?
• Congrats to Blogcritics for 10 million visitors
• Use Microsoft Points to buy and send gifts through Facebook someday? Think about it
• 50 site visitors OR 10,000 ad views worth $100/month?