Is MySpace Worth $65 Billion?
With Facebook receiving a $15 billion valuation, Peter Lauria suggests that MySpace would be worth $65 billion based on the fact that they have 185 million users. As I said yesterday, the present value of Facebook is nowhere near $15 billion. If Facebook was worth $15 billion today, Myspace still wouldn’t be worth $65 billion. Why?
The value of a MySpace user is much less than a Facebook user. MySpace has a less efficient method of tracking user activities whereas Facebook is clearly effectively tracking user interactions as news items.
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