Myspace.com worth over $2 BILLION??? WTF???

[jseankil]

News Corp. (hearts) MySpace
The media giant recently bought MySpace, the popular networking site for youth -- and it looks like a grand-slam.

NEW YORK (FORTUNE) - When News Corp. (Research) paid $580 million for MySpace, an Internet site for teens and young adults, some people figured that Rupert Murdoch's fascination with all things digital had once again led him to overpay for a new-media property.

Half a billion dollars was a whole lot of cash for an asset that a year earlier had been valued at $44 million, when a Silicon Valley venture capital firm bought in.
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This time, though, the News Corp.'s purchase of MySpace is looking like that rarest of rarities in the media world -- a much-ballyhooed acquisition where it turns out that the buyer underpaid.
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You don't have to take his word for it. A social-networking site called Facebook, which attracts mostly college students, is reportedly on sale, with an asking price of $2 billion. A media-industry source says Facebook's owners turned down a $750 million bid from Viacom (Research). (Viacom declined comment.)

Facebook is a huge phenomenon -- both my college-age daughters swear by it, and it's among the top 10 sites on the Internet -- but it is not as big, by any measure, as MySpace. So if Facebook is worth even $1 billion, MySpace has to be valued at three or four times as much.

http://money.cnn.com/2006/03/28/technology/pluggedin_fortune/

[jseankil]

1. Is this the 90's dot com boom all over again (limited to social websites)

What type of revenue is myspace bringing in...or is it the 'potential revenue' that makes these sites 'worth' so much?

[sendero]

9. I doubt it..

.... I'm betting these operations bring in huge advertising dollars. I think everyone learned their lesson in the 90s, I would certainly hope so anyway.

Traffi is worth a lot of money. If you have a web site that gets millions of page views, you can sell ads or do affilate sales and there is definitely money there.

[LynneSin]

2. Just last night on our local news - another boy lured by an older man

and molested

Thanks Rupert!

[rinsd]

5. No thank Al Gore....

...without him there would be no internet.

[gunsaximbo]

3. Myspace is an advertisers dream.

With all of those "tweens", "teens" & "Generation M's" on there it will be a goldmine for that right wing, conservative, fox news owning, S.O.B..

All three of those targets in one place at the same time. I can't wait for AD-BUSTERS to rip into them.

Gunsaximbo

[rucky]

6. plus they can target advertising by interest & demographic

of course, once that gets rolling, it will become "their space".

[DRoseDARs]

8. Not unless the users use Firefox w/Adblock; I haven't seen ads in weeks nt

[Redstone]

4. More dotcom smoke& mirrors.

Redstone

[WestSeattle2]

11. afraid so....and look at Google, same thing. n/t

[BlueEyedSon]

7. its a whole mess o' eyeballs

[MadHound]

10. Enron accounting is alive and well

Sure, MySpace is worth over two billion, that is if you factor in the profits that are going to be made over the next twenty years:eyes:

This is just more Enron style accounting in order to pump up the price of stock. Trouble is, not only is this sort of accounting still common among corporations, I fear that it is also being used by Bushco.