Purchasing users and page views
- Posted on [September 23, 2006 ] @ 10:33 am
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With Facebook’s rumored $900 million valuation, some of the questions that I have about such a deal are:
* Yahoo has similar technology with Yahoo 360 so the advantage of a purchase seems to be acquiring a strong user base and lots of page views to monetize w/ ads. With Facebook’s 9+ million users, the valuation equals roughly $100 per user. Will each of those users rake in $100 over the next x years? Dick Parsons has similar thoughts
* Given the history of the social networking sites (ie. Friendster), I think it’s risky to think that they can maintain the strong user base as trends change between users and generations. With MySpace being popular with younger kids, how likely is it that MySpace users will create Facebook accounts when they go to college?
* With Yahoo’s various acquisitions of Flickr and Delicious, how will they drive this traffic to other, more profitable, Yahoo services, like web search? Does Ask.com’s strategy of placing an Ask searchbox on their properties work, like this one on Ticketmaster