Quote:
Originally Posted by srhcom
I don't know if you should assign a per user value. Why would social networking be different than a normal site, where you take around a year of profit, and that's the site's value on the market?
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Because EYEBALLS are worth money. Real unique views and users means advertising money and possibilities.
Youtube is a great example. Many ask why would google pay so much money to own that site, and not make anything substantial off it. If we took Youtubes expenses, and profits to set a value on it, well we wouldn't even come close to what its really worth.
They have the platform to lay out ANYTHING they want to 60-70 MILLION unique viewers over the period of a couple days. This is about more then just 'profits' this is market dominance and control at its finest.
How much would one of the biggest and fastest growing companies in the world pay for such exposure (even if it cost them a million bucks loss a day)? Only about $1.65 billion.