Why Facebook Is Worth Over $10 Billion

Facebook have 18 million people, plenty. Nevertheless MySpace has 100 million + and sold for merely a $580 million to News Corps in 2005. YouTube offered to Google for a noted $1.65 billion in 2006 but it provides over 100 million videos a day and has over 2-5 million visitors a mo...

Aol! have been in talks with Facebook for over a year now and apparently recently got shy at Facebooks $1 million price tag but when I will describe here Yahoo! have missed on a complete bargain. This stirring www.linkedin.com/pub/william-telish/b5/734/a8b/ paper has a pile of cogent cautions for where to see it.

Facebook have 18 million people, lots. But MySpace has 100 million + and sold for only $580 million to News Corps in 2005. Facebook offered to Google for a reported $1.65 billion in 2006 but it provides over 10-0 million videos a day and has over 2-5 million visitors a month. So what makes Facebook so useful? I-t gets somewhat big traffic levels although not on par with YouTube or MySpace. Despite now being offered to anyone it started life being an distinctive network for students (you needed an educational e-mail to register) and this is still its primary consumer group.

Therefore wheres the cash?

Currently Facebook features traditional banner advertising o-n people homepages and selected pages through the website. Adverts are random and hidden in so much as theyre not targeted at any particular user- theyre just offered for the entire site on a random basis. Facebook are doing ok from this arrangement on the basis of the amount of page impressions they receive, although in fact theyre keeping promotion at a minimum in order to produce the worth of-the site for its eventual sale that will probably happen in 2007/8. Smart people!

The energy of information

Register with Facebook and quickly you'll find yourself giving away huge quantities of useful personal information. Consider it Facebook know your name, they know how old you are (actually your D.O.B that is infinitely more valuable as Ill carry on to describe), they know if youre man or woman, they know your neighborhood, your postcode if you choose to offer it away (although I doubt many customers choose this), they know if youre single, in a relationship (and who with), married, divorced and so on, they know your sexual orientation. Ok so you can answer all these questions as truthfully, dishonestly or vaguely as you like but from what Ive seen people happily give accurate details about them-selves as its their friends and potential friends who are planning to see it- and no-one else right?

But what else do Facebook know? Well they know where you went to school, where you work, more sinisterly your religious and political views. Using this we could begin to build-up a pretty valuable industry report. As Im telling Facebook I may as well tell you Im Male, 22 (born in August), Straight, in a relationship, traditional, atheist from Brighton, England. Visited school at Blatchington Mill Secondary, university at a spot named BHASVIC, University at Bournemouth. Out of this data we can bring more assumptions- I live in Brighton and in line with the area of my schools catchment region we can pretty accurately map places in Brighton I know about, visit, and live in (think Google routes API). Im a conservative from a moderately rich area in full time work for that reason Im probably white, middle-income group with a good disposable income.

So what else? Facebook know what you look like, they possibly know what you used to look like a couple of years ago as well. Possibly most significantly they know who your friends are, they know how you know them, they know when you speak to them, what they appear to be and ultimately they know exactly the same information about them as they know about you- youre interests, likes and dislikes and your friends preferences as well.

They know your email address, so they know if you use Hotmail, Yahoo! Mail and so on. Should you desire to identify further about worth reading, there are heaps of online resources people might think about investigating. They know your phone number so they could pretty easily work-out your phone company. So they could work out your ISP they've your IP address. They know where youve attained the website from therefore they know what se you use (enter Yahoo! And Google to the war), what browser youre on, they know if youre visually impaired or have learning disabilities from your settings on your browser.