Interesting Tech Review interview with Evan Williams.
Category Archives: Social Networking
Alternatives to Facebook
Useful list from TechCrunch.
Another facebook valuation
From Jeff Jarvis…
A Deutsche Bank analyst says that a newspaper reader in 2004 was worth $964 a year. Today, that’s $500. Facebook’s 50 million active users translates to $300 per at that valuation. And newspapers are shrinking while Facebook is growing by 200,000 new users a day. A day. And those users spend an average of 20 minutes each day inside the site vs. 41 minutes a month on newspaper sites, says DB…
Hope for wrinklies
Bobbie Johnson, writing in the Guardian…
Saga Zone, created by the insurance and holiday company, launches today with the aim of becoming the social website of choice for the over-50s. Users of Saga Zone must be over 50 – but once they have joined members can create their own profile pages, contact friends or join in online discussions.
The site, which has been running in trial mode for four months, has more than 13,000 users so far – and the company hopes this will increase dramatically now it is officially open. “Older people aren’t shy of using the internet – they have a verve for life that applies online as well as offline,” said Paul Green, a Saga spokesman. “Thirteen thousand is just a drop in the ocean – in theory the membership is practically limitless. Social networking isn’t going to be for everyone, but the feedback so far has knocked our socks off.”
Footnote: mature folks like me who use both a BlackBerry and an Apple Mac are now officially known as “blackberry and apple crumblies”.
Facebook stats for the UK
Hmmm… I wonder how reliable these are…
They’re billed as “extrapolations”, which is not encouraging. Still, for what they’re worth, here they are:
Sex
6,407,580 people in the UK
2,320,200 are male
2,789,540 are femaleAge
3,241,800 men between 18 and 25
1,565,520 women between 18 and 25
907,620 men between 25 and 35
1,006,420 women between 25 and 35
227,220 men and women between 35 and 60Professional vs student
5,160,740 who are not students
295,260 are in High School
447,820 are in college
503,760 Alumni
Damien Mulley’s done the same thing for Irish users of Facebook.
Thanks to Rory Cellan-Jones for the original link.
Facebook and the Groucho problem
This morning’s Observer column…
Pssst … have I got a deal for you! Send me a cheque for £10 and I will sell you a 0.000001 per cent interest in NetworkerColumns Ltd, a privately held company which produces copious quantities of mildly irritating prose. I will then release a press statement announcing that we are both partners in a £1bn company!
Daft, isn’t it? Well, it’s exactly the same logic that has led the mainstream media to hail Facebook as a $15bn company – that is to say, the fifth-most valuable internet company after Google, eBay, Yahoo and Amazon. What happened is that Microsoft, after months of secret negotiations, announced it was paying $240m for a 1.6 per cent stake in Facebook. Multiply 240 million by 100, divide by 1.6 and out pops the ‘valuation’…
Social graph-iti
The Economist isn’t impressed by the huge valuations currently being placed on Facebook. Neither am I.
Update: In the end, Microsoft valued Facebook at $15 billion.
Microsoft has paid $240m for a 1.6% stake in Facebook that values the hugely popular social networking site at $15bn.
Facebook spurned an offer from Microsoft’s rival Google, which was also keen to invest the site.
Microsoft will also sell internet ads for Facebook outside the United States as part of the deal that took several weeks of negotiating.
What’s surprising is how small the Microsoft stake is. This has to be about advertising rather than investment.
Taking people at their Facebook value
This morning’s Observer column…
To the old question: what are friends for? we must now add: how much are they worth? This is topical because rumours abound that Microsoft is contemplating buying a stake in Facebook, the social networking site. The really interesting bit is the arithmetic. Microsoft is supposedly contemplating paying between $300m (£147m) and $500m for a 5 per cent share. If true, this suggests that its advisers put a value of between $6bn and $10bn on Facebook. Google is also reported to be sniffing around, raising the prospect of a bidding war for a website which essentially enables people to post embarrassing photographs and impress acquaintances with accounts of their busy lives…
Social Networking is a feature, not a destination
Interesting insight on social networking, by Chris Anderson:
Right now the world is focused on stand-alone social networking sites, especially Facebook and MySpace, and the fad of the moment is to take brands and services there, as companies build Facebook apps and MySpace pages in a bid to follow the audience wherever they happen to be. But at the same time there’s a growing sense that elements of social networking is something all good sites should have, not just dedicated social networks. And that suggests a very different strategy–social networking as a feature, not a destination…
TechBubble 2.0 coming along nicely
According to today’s New York Times,
Some people laughed at Mark E. Zuckerberg when he reportedly turned down a $900 million offer last year for Facebook, the social networking Web site he founded three and a half years ago.
But Microsoft, Google and several funds are considering investments in the fast-growing site, according to people with knowledge of the talks, that could give the start-up a value of more than $10 billion.
While discussions were still in the early stage, these people said that Microsoft was considering an investment of $300 million to $500 million for a 5 percent stake of the company. Google is also said to be interested in an investment.
Facebook’s valuation could go even higher as the two rivals create the kind of competitive bidding situation that has recently driven the acquisition prices of other start-ups into the stratosphere.
Representatives from Facebook, Microsoft and Google all declined to comment on the talks.
Er, that’s $10 billion for an outfit that, according to one analyst quoted in the Times story, brought in $60 million to $96 million in annual revenue, with no real profit.
Later: It’s interesting to see the rationalisations being offered for this valuation — and why Microsoft and Google might want Facebook. Here’s one for example:
“There’s a lot of strategic value beyond the pure financial value in an investment like this,” said Jeremy Liew of Lightspeed Venture Partners, who closely watches Web investments. Liew, a former executive at AOL, said social networks like Facebook and MySpace are encroaching on the turf of portals like Microsoft’s MSN to serve as users’ home page.
“There’s not a lot of a zero-sum games, but there’s only one home page,” Liew said. “There’s only one thing that is the first thing you see” when signing on to the Internet. “That’s what I think is the strategic value, and I think Microsoft needs it more than Google.”