Overhype

by Carlo Longino




Web 2.0's Business Model: Find The Biggest Sucker

from the do-you-take-checks? dept

The fallout from the story earlier this week that said Facebook was holding out for $2 billion continues, with the figure getting debunked left and right. At an investor conference, the head of Fox Interactive Media (which bought MySpace for $580 million), said his company wasn't interested in Facebook for $2 billion, but that he is "intrigued by some of these start-ups in the Web 2.0 space" because they're not expensive, and they don't have a business model. Both assertions are open to debate: the price tags being tossed around for some of these companies certainly aren't cheap, and the guy doesn't seem to realize that many of these companies do have a business model -- it's convincing people like him that they're worth ridiculous amounts of money.

Reader Comments

Subscribe: RSS

View by: Time | Thread


  • identicon
    Denfro Magic, 31 Mar 2006 @ 10:05am

    Yea

    I'd buy that for $1

    reply to this | link to this | view in chronology ]

  • identicon
    Swati, 31 Mar 2006 @ 11:17am

    I still don't see how myspace is worth 580 million. Either people have no value of money or...they have no value of money.

    reply to this | link to this | view in chronology ]

  • identicon
    Bum, 31 Mar 2006 @ 11:22am

    Data mining is the new gold rush

    The demographic info is what they must have paid for. I never read their privacy policy or used their site though.

    reply to this | link to this | view in chronology ]

  • identicon
    DreadedOne509, 31 Mar 2006 @ 11:26am

    I think it's funny as hell. Just glad the government doesn't spend enormous amounts of money on worthless crap. Oh wait...

    On a more serious note, what in the world could possibly be worth $580 million in myspace? The demographics by themselves certainly are not worth that much. The advertising revenue isn't. What do they know, or think they know that the rest of the world doesn't? Curiouser and curiouser.

    reply to this | link to this | view in chronology ]

  • identicon
    megabump, 31 Mar 2006 @ 11:29am

    Demographics

    I think you underestimate the value of someone's personal information. They are essentially paying for everyones information that they provided when they signed up.

    reply to this | link to this | view in chronology ]

  • identicon
    Andrew Strasser, 31 Mar 2006 @ 11:57am

    Yeh.

    Who knows what now and who owns them through where and what group has an agreement to share that information with who.

    reply to this | link to this | view in chronology ]

  • identicon
    pedalfast, 31 Mar 2006 @ 12:36pm

    demos?

    hey #5. i'd hate to break the news that when you join myspace, you dont offer any information about yourself other than name, country, gender, and birthday.

    Most importantly, it's common knowledge that everyone lies about that stuff on community sites.

    580m for fake data? sounds like a wonderful deal.

    reply to this | link to this | view in chronology ]

  • identicon
    BlackCow, 31 Mar 2006 @ 1:05pm

    pssh

    myspace is stupid.

    reply to this | link to this | view in chronology ]

  • identicon
    GravAxis, 31 Mar 2006 @ 1:35pm

    agreed - sorta

    MySpace is for 10 yr olds. I'm sure they love it. Sorta like I loved my Tonka truck...

    reply to this | link to this | view in chronology ]

    • identicon
      ChocoTuar, 2 Apr 2006 @ 7:15pm

      Re: agreed - sorta

      Not necessarily ten-year-olds. I think it's more for teenagers to feel like they know how to use a computer. The funny thing is, MySpace accounts for maybe a billionth of a percent of information there is to know about a computer. Without MySpace, computers would be of nearly no use to most of the people that use it.

      reply to this | link to this | view in chronology ]

  • identicon
    will, 31 Mar 2006 @ 2:22pm

    missing the point

    Any website that gets as much traffic as myspace is extremely, rediculously valuble. User info is secondary. Even if the site collected no info, but had that much web traffic it would still sell that much.

    on the internet:

    traffic = money

    reply to this | link to this | view in chronology ]

  • identicon
    Swati, 31 Mar 2006 @ 2:39pm

    Anywhere in the world, only money=money.

    If that traffic is not generating money (580m at that), it is not equal to money.

    reply to this | link to this | view in chronology ]

  • identicon
    hammer, 31 Mar 2006 @ 4:28pm

    yep...it is

    you wouldnt consider 60+million registered users as being worth rediculous amounts of money.
    consider every page have 2 ads, and each person visits an average of 10 pages a day, wow thats like 1.2 billion ads that were viewed, not to mention some people DO click on those "fun" little flash ads they have....and there are more than 60 million users thats just an estimite of a number i say a while ago.
    the guy above was absolutely right
    traffic=money

    reply to this | link to this | view in chronology ]

    • identicon
      ChocoTuar, 2 Apr 2006 @ 7:18pm

      Re: yep...it is

      OK, then how is money calculated in terms of "viewing" the ads? 1.2 billion is a lot, but not if it's only about 5 cents per click. I haven't done the math, but 580 million dollars might take a bit to get to.

      reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 1 Apr 2006 @ 12:15am

    FACEBOOK is going to be WAYYY more valuable than myspace IMO.

    Myspace is gonig out, fast. It's full of spam and crap.
    Facebook is the next myspace.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 1 Apr 2006 @ 6:28am

    Oh, how history repeats itself. The dot-com bubble is being blown again. It will soon pop.

    reply to this | link to this | view in chronology ]

  • identicon
    Sohrab, 1 Apr 2006 @ 5:49pm

    the problem with facebook is that its very limited. Just to college and HS students who both dont have any money, Myspace, anybody can be on it

    reply to this | link to this | view in chronology ]

  • identicon
    ceejayoz, 2 Apr 2006 @ 1:36pm

    Re: #16

    Sohrab, anyone who has taken an intro marketing class knows that the 18-25 demographic is TREMENDOUSLY valuable. To say they don't have money is absurd.

    reply to this | link to this | view in chronology ]

  • identicon
    pwb, 2 Apr 2006 @ 9:08pm

    "what in the world could possibly be worth $580 million in myspace?"

    MySpace's home page by itself generates $500k per day. You don't have to like MySpace or think it's viable long term, but $580m was a steal.

    reply to this | link to this | view in chronology ]


Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here
Get Techdirt’s Daily Email
Use markdown for basic formatting. HTML is no longer supported.
  Save me a cookie
Follow Techdirt
Techdirt Gear
Shop Now: Math Is Not A Crime
Advertisement
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Advertisement
Report this ad  |  Hide Techdirt ads
Recent Stories
Advertisement
Report this ad  |  Hide Techdirt ads

Close

Email This

This feature is only available to registered users. Register or sign in to use it.