Comments on: Meebo, Bebo and AOL, Oh My! http://regulargeek.com/2008/03/18/meebo-bebo-and-aol-oh-my/ Where programming, the internet and social media collide. Fri, 21 Nov 2008 20:34:18 +0000 http://wordpress.org/?v=2.6.3 By: honest ape http://regulargeek.com/2008/03/18/meebo-bebo-and-aol-oh-my/#comment-82 honest ape Thu, 20 Mar 2008 02:30:39 +0000 http://regulargeek.com/2008/03/18/meebo-bebo-and-aol-oh-my/#comment-82 Exactly! For that much money, Facebook needs to show buyers a realistic plan for investment return. I don't care how much potential the site has, I can't imagine recouping $525 per user in the foreseeable future. Exactly! For that much money, Facebook needs to show buyers a realistic plan for investment return.

I don’t care how much potential the site has, I can’t imagine recouping $525 per user in the foreseeable future.

]]> By: admin http://regulargeek.com/2008/03/18/meebo-bebo-and-aol-oh-my/#comment-81 admin Thu, 20 Mar 2008 00:04:35 +0000 http://regulargeek.com/2008/03/18/meebo-bebo-and-aol-oh-my/#comment-81 I am somewhat surprised that there has been so little interest in Digg. I can't imaging that some of the larger media companies really care about the "minor" issues they have been having. The best part of the valuations is seeing something like the difference in the Digg and Facebook prices. When I saw $525 for a Facebook user I was shocked. That is typically more than most enterprise software licenses. And nobody seems to know how to properly monetize the users. There is only so much ad serving you can do. I am somewhat surprised that there has been so little interest in Digg. I can’t imaging that some of the larger media companies really care about the “minor” issues they have been having.

The best part of the valuations is seeing something like the difference in the Digg and Facebook prices. When I saw $525 for a Facebook user I was shocked. That is typically more than most enterprise software licenses. And nobody seems to know how to properly monetize the users. There is only so much ad serving you can do.

]]> By: honest ape http://regulargeek.com/2008/03/18/meebo-bebo-and-aol-oh-my/#comment-80 honest ape Wed, 19 Mar 2008 17:42:35 +0000 http://regulargeek.com/2008/03/18/meebo-bebo-and-aol-oh-my/#comment-80 Digg's offer may seem cheap, but no one seems too interested to buy it. Personally, I think we'll see a continuing decline in Digg users. But that's just a hunch. And $525 per user for Facebook?? Maybe I'm underestimating the return on the users, but that seems ludicrous to me. If I were a buyer, I'd care less about user base than I would about a solid plan to turn those users into profits. How many users of a site actually click on ads? How many would pay for premium services? If I were a buyer and could be reasonably comfortable that I'd make x dollar per user, I'd pay x dollar per user to buy the site. It's a simple cost/benefit analysis. That's what determines the value of a company to me. And those details are the ones you never read about, but are of most interest to me. Digg’s offer may seem cheap, but no one seems too interested to buy it. Personally, I think we’ll see a continuing decline in Digg users. But that’s just a hunch.

And $525 per user for Facebook?? Maybe I’m underestimating the return on the users, but that seems ludicrous to me.

If I were a buyer, I’d care less about user base than I would about a solid plan to turn those users into profits. How many users of a site actually click on ads? How many would pay for premium services? If I were a buyer and could be reasonably comfortable that I’d make x dollar per user, I’d pay x dollar per user to buy the site.

It’s a simple cost/benefit analysis. That’s what determines the value of a company to me. And those details are the ones you never read about, but are of most interest to me.

]]>