Show me the $$$
Tuesday, March 28th, 2006Facebook, the MySpace-like social networking website based on University-affiliations, is on the block and seeking more than a few dimes.
Founder Mark Zuckerberg took Facebook live just two years ago, while a sophomore at Harvard. After recently turning down an offer for $750 million and seeing Facebook’s growth stagnate, he is now seeking up to $2 billion for the popular website, according to BusinessWeek.
Om Malik still believes he should have sold out when the money was on the table as Facebook will be hardfought to compete with the anomaly that is MySpace.
While MySpace continues making headlines as the detective’s best friend, Facebook may be best known locally for exposing the profile of Holly Ashcraft, the USC student convicted of murder for abandoning her newborn in a dumpster near campus last fall.
But many college campuses are already committed to adjusting to a campus culture future dominated by sites such as MySpace and Facebook.
UC Berkeley administrators told the Contra Costa Times:
“…Because students are so far ahead of us, we have a lot of catching up to do.” [...] “If we don’t,” added student-development director Jerlena Griffin-Desta, “we’re missing a whole shift in the culture.”
MySpace fetched nearly $600 million last year when Rupert Murdoch swallowed it whole. Facebook’s audience is not nearly as huge, however, as noted at TechCrunch, it is used by 85% of all college students.
$2 billion is a ridiculous amount of money for a social networking site, but, alas, not three weeks ago Viacom announced its interest in combatting Rupe mano-a-mano.
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4 Responses to “Show me the $$$”
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March 29th, 2006 at 5:13 am
another social connection site making it big, hummmm…. gives me an idea. i have noticed lots of activity at woozradio, andy, when are u going to make ur power move? kids these days. they need to spend more time AWAY from the computer and move back to the tv. Um, did anyone tell them a wacky new show called “Teachers” just debuted?
March 29th, 2006 at 16:13 pm
And what about the correlation between education and spending power ?
Why does CPA pricing models for advertisement have a much higher price than CPC model ?
Simple better rate of conversion.
Contention being that marketers would have a higher interest in Facebook due to the correlation between spending power and education. Its simple more efficient targeting as compared to some of the larger players.
March 29th, 2006 at 16:16 pm
I see many of commments about monetization, and losing numbers to mysapce.
What about the correlation between education and spending power ?
Why does CPA pricing models for advertisement have a much higher price than CPC model ?
Simple better rate of conversion.
Contention being that marketers would have a higher interest in Facebook due to the correlation between spending power and education.
Its simple efficient targeting as compared to some of the larger players.
September 7th, 2006 at 18:05 pm
[...] In March, Zuckerberg turned down a $750 million buyout offer and told BusinessWeek he thought Facebook was worth at least $2 billion. 85% of all college students use Facebook, according to TechCrunch, which has prompted university officials to state: “we’ve got alot of catching up to do” as far as keeping tabs on their students. It just got a bit easier — and to be honest, anyone on Facebook could have already been kept track of using RSS. [...]