Derrick
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- Joined
- Nov 22, 2010
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Facebook owner Mark Zuckerberg, has reportedly turned down US 900 million from Yahoo, stating that he wants it to remain independent … for now at least.
My personal feeling is that this decision has little to do with the need to stay free of the big giants like Google and Yahoo and more to do with hedging for a higher offer.
Reports have also emerged that Zuckerberg said he will consider selling if someone throws say, US 10 billion his way.
The problem with this scenario is that whilst US 10 billion is a ridiculous amount no one really knows what the site is worth.
There are measurements out there to ascertain the value of a website but often social networking websites will bomb out on many of the criteria set.
For example, MySpace was not making a significant profit at the time that Murdoch purchased the website for around US 300 million (holding company went for US 580 million), yet one of the factors often used is revenue generated.
Web 2.0 sites are creating a headache for many traditional companies who simply don’t know what to do about this new trend. They know that these sites gather people like flies but it is difficult terrain for them to navigate. Generating revenue from a Web 2.0 site is also somewhat of a challenge as it requires specialized skills.
Social networking is big news and everyone wants a piece of the pie but, in the US at least, it’s no longer easy to pick up a bargain, a message that Zuckerberg is sending out loud and clear.
For a CNN video on Facebook go to:
http://www.cnn.com/video/#/video/world/2007/07/26/magnay.facebook.uk.AFFL
My personal feeling is that this decision has little to do with the need to stay free of the big giants like Google and Yahoo and more to do with hedging for a higher offer.
Reports have also emerged that Zuckerberg said he will consider selling if someone throws say, US 10 billion his way.
The problem with this scenario is that whilst US 10 billion is a ridiculous amount no one really knows what the site is worth.
There are measurements out there to ascertain the value of a website but often social networking websites will bomb out on many of the criteria set.
For example, MySpace was not making a significant profit at the time that Murdoch purchased the website for around US 300 million (holding company went for US 580 million), yet one of the factors often used is revenue generated.
Web 2.0 sites are creating a headache for many traditional companies who simply don’t know what to do about this new trend. They know that these sites gather people like flies but it is difficult terrain for them to navigate. Generating revenue from a Web 2.0 site is also somewhat of a challenge as it requires specialized skills.
Social networking is big news and everyone wants a piece of the pie but, in the US at least, it’s no longer easy to pick up a bargain, a message that Zuckerberg is sending out loud and clear.
For a CNN video on Facebook go to:
http://www.cnn.com/video/#/video/world/2007/07/26/magnay.facebook.uk.AFFL