How Much Is Your Social Networking Site Worth?
By Sahad PV - Wed 27 Sep 2006 08:10 PM PST
You can have some fun here. How much is your social networking site worth? If you have no clue, here is an article on the valuations of some big social networking sites.
Considering News Corp. paid $580 million to buy MySpace, the price paid per user at the time comes to about $30. It had 19 million users then. If Yahoo intends to buy Facebook for $1 billion, then it would pay $110 per user for itss 8.8 million users. Sony paid $114 per user when it acquired video sharing site Grouper for $65 million. It claims to have had 570,000 registered users. There is one publicly traded social networking site - Japan’s Mixi trades on the Tokyo Stock Exchange. The 2-year old company has a valuation of $1.5 billion. That’s a high $315 per user for its registered base of 5 million.
Now benchmark your social networking site against these valuations, and have some fun! By the way, don’t forget to sell before the crash.
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