MediaVidea

How to make social networking sites give a return on investment

From a great article at Gigaom, comparing buyouts of social networking/web application sites; Bebo’s $850 sale to AOL - $21.25 per user, News Corp buying out Myspace for $580 million in 2005 - $27.60 per user, Ebay buying out Skype for $4.1 billion (and subsequently eating away its innovation mojo) - $52 per user.

Finally, Microsoft’s investment in Facebook propelled its valuation to $15 billion – valuing 50 million users at that time @ $300 each.

Bebo managed to create a TV channel of sorts on its site.
Surely, buyout is not the only business model for social networking sites?

Labels: bebo, facebook, social networking

posted by Pramit Singh @ 3:04 PM