Let's Play the Social Network Valuation Game!
Following the rumors surrounding Fox’s attempt at merging their interactive division with Yahoo, bloggers have been postulating about what MySpace would be valued at. Fred Wilson suggests that Microsoft is going to have to now pay a premium for Yahoo! thanks to their ridiculous $15 billion valuation of Facebook. Today Henry Blodget posts about Microsoft potentially increasing their bid.
Regardless of the valuation that Yahoo! receives, social networks have become some of the largest entities on the web earning them outlandish valuations without even having an effective revenue model.
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