Facebook tops 300 million users

[Naveed Yaseen]

SAN FRANCISCO: Facebook is making enough money to cover its costs and now has 300 million users, the world’s largest social networking site said on Tuesday, proving the Internet’s newest star industry can be a viable business.

Facebook is now generating enough cash to cover its operating expenses, as well as the capital spending needed to maintain its fast-growing service.

Analysts said this shows the financial viability of Facebook, which has faced questions about its underlying business model, despite its popularity, and was a good sign for a potential initial public offering. “It’s certainly meaningful to show that this is absolutely the real deal,” said Broadpoint Amtech analyst Ben Schachter. “They are executing. People are spending money on the site.”

Since its creation five years ago, Facebook has emerged as one of the Internet’s most popular destinations and is challenging the Web’s established powerhouses like Yahoo and Google.

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