Facebook beats Myspace March 29, 2006
Is it possible that a website with less monthly visitors and pageviews than it’s competitor can fetch a price more than double the price the better competition did. Well in this day and age that is a huge possibility, Facebook.com turned down an offer for 750 million and is hoping to get 2 billion, which basically doubling the 580 million NewsCorp paid for Myspace.com. So I guess in the world of business you don’t have to be the best, to be the most profitable.
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What happened to the good old days of buying companies based upon the revenue they generate not the amount of members they have? I can’t see facebook generating 2 billion dollars anytime soon in just ad revenue. I don’t know; I just haven’t been wooed by the digital social scene. Bahumbug.
You also have to weigh in their reach and the perceived value of that reach to other companies. This is a key target audience for a lot of companies, and would be invaluable to the likes of Coca-Cola and other companies the need this market. Of course, that doesn’t mean it’s the perfect purchase for Coca-Cola (it’s not their business area, and never will be) but another media company will find value in it. But who’s bigger than NewsCorp?
2 billion sounds like a stretch, but we’ll see. Great blog though. Check out mine when you get a chance. It’s at www.rohailrizvi.com. Thanks.
Hey Maurice,
Wow I’m learning a lot from your blog as well. We should exchange links.
-Ro
Appreciate you checking out the YGG blog, but I’m just one of the few writers who write for this blog, and trust the others are much better writers than me.