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.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
Yea
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Data mining is the new gold rush
[ link to this | view in chronology ]
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.
[ link to this | view in chronology ]
Demographics
[ link to this | view in chronology ]
Yeh.
[ link to this | view in chronology ]
demos?
Most importantly, it's common knowledge that everyone lies about that stuff on community sites.
580m for fake data? sounds like a wonderful deal.
[ link to this | view in chronology ]
pssh
[ link to this | view in chronology ]
Re: pssh
[ link to this | view in chronology ]
agreed - sorta
[ link to this | view in chronology ]
Re: agreed - sorta
[ link to this | view in chronology ]
missing the point
on the internet:
traffic = money
[ link to this | view in chronology ]
If that traffic is not generating money (580m at that), it is not equal to money.
[ link to this | view in chronology ]
yep...it is
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
[ link to this | view in chronology ]
Re: yep...it is
[ link to this | view in chronology ]
Myspace is gonig out, fast. It's full of spam and crap.
Facebook is the next myspace.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Re: #16
[ link to this | view in chronology ]
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.
[ link to this | view in chronology ]