Social Times - Latest Comments in Let’s Play the Social Network Valuation Game!

Re: Let’s Play the Social Network Valuation Game!

software developers — Tue, 30 Mar 2010 05:45:03 -0000

2 years later the scientists try to build a model of behavior in social media: spammy self-promotion won't be treated as natural looking social media experience. So the real cost of social media corporations is often overestimated due to the quantity of the content but not quality.

Re: Let’s Play the Social Network Valuation Game!

Portal Development — Sat, 19 Dec 2009 09:09:54 -0000

Actually we are very much social and want to build up a social net work, face Book is one of the best example. I study your post, like it very much. Thanks.

Re: Let’s Play the Social Network Valuation Game!

srini kumar — Thu, 14 Feb 2008 23:04:50 -0000

I think the financial picture doesn't take into account the strategic picture.

What Ballmer and Murdoch and Zuckerberg are considering is that happy social network and web application users are basically locked in. API's mean that these users won't even get quite so bored over time because third party developers and content creators will continue to keep their platforms fresh. Finally, someday the "cost-per-click" business model innovation that saved Google will be echoed with social networks. Someone's going to figure out how to monetize these things. Souls locked into platforms - that is the strategic significance of social networking.

It is also close to a zero-sum game - users probably have a certain number of web 2.0 type sites they'll bother to use frequently - and that's it. There may be some evolution or disruption of this order someday, but there is also a great likelihood that it'll be like TV before cable - there will be a Big Three, and then a few independent successes, and then the long tail. Who those Big Three will turn out to be is the subject of the MS bid for Yahoo - MS will not be locked out of that brandspace, and without Yahoo it does not look good for them.

Re: Let’s Play the Social Network Valuation Game!

Jonathan Kleiman — Thu, 14 Feb 2008 15:13:58 -0000

then again... when was the last time something that looked every bit like a fad got valuations of 100x their rev?

Re: Let’s Play the Social Network Valuation Game!

Jonathan Kleiman — Thu, 14 Feb 2008 15:11:21 -0000

P/E ratios of 100 are pretty hard to justify without seeing a nice plan to generate revenue. I assume one exists.