how much are web 2.0 companies like zynga, tweeter, facebook worth?

ON FACEBOOK: $50-60 Billion

Just this early 2011, Facebook has received $450 million from Goldman Sachs and $50 million from Russian investment firm Digital Sky Technologies.

Facebok has raised more than $800 million over five rounds of funding. With this round, the social network will have raised more than $1.3 billion. The New York Times says that the deal sets the company’s valuation at a whopping $50 billion. Facebook’s worth has fluctuated between $40 billion and $50 billion in the secondary markets for the past few weeks. In September, Facebook was worth between $23 billion and $33 billion and in November it was worth $41 billion.

As part of the deal, Goldman Sachs will help Facebook raise an additional $1.5 billion. To do this, the investment bank will create a “special purpose vehicle” that will allow others to invest in Facebook indirectly. This would help Facebook bypass a S.E.C. regulation that requires companies with more than 499 investors to disclose their financial results to the public.

Goldman Sachs will be a first-time investor in Facebook, while Russian venture capital firm Digital Sky Technologies had previously invested $200 million in the company Mark Zuckerberg built at a $10 billion valuation. According to the NYT report, Goldman Sachs has the option to sell $75 million of its stake to DST.

It’s unclear what Facebook will do with the money. It could cash out some of its employees and existing investors with that money or go on a hiring spree. It has so much money now that it will likely do both.

This February 2011, Bloomberg reports that Facebook Inc. is considering letting employees sell as much as $1 billion of their shares in an offering that would value the company at almost $60 billion, according to two people with knowledge of the matter.

Currently the investment value of this social networking site reached $ 50 billion, exceeding the value of Yahoo Inc. or eBay Inc., but still below investment from Amazon.com Inc. and Google Inc.

ON ZYNGA: $10 Billion?

Zynga is raising $500 million at a $10 billion valuation. Last fall, Twitter raised $200 million at a $3.7 billion valuation.

Despite reports, Twitter cofounder Biz Stone just told NPR that his company is not “valued” at $10 billion.

That means Zynga is worth at least twice as much as Twitter. Perhaps more relevantly, it’s worth $4 billion more than Electronic Arts.

But it makes sense now. Zynga revenues are projected around a billion dollars in 2011. Twitter wants to reach $100 million.

Zynga also has scale, too – 274 million monthly active users, according to AppData.com.

The Wall Street Journal also reported last week that Google Inc and Facebook Inc, plus others, have held low level takeover talks with Twitter that give the Internet sensation a value as high as $10 billion.  Zynga, filed papers in April authorising the issuance of new stock that valued the company at about $4 billion, the paper reported.

FarmVille occupied the top spot for Facebook games for a long time and CityVille seems set to generate as much interest long term. Virtual goods are a growing market and when it comes to browser based games, Zynga is currently a dominant force.

Provided that Facebook remains the premier social network with its hundreds of millions of users, Zynga will have a vast platform from which to launch it games and fertile ground of untold small networks of friends who enjoy social gaming together.

However, one particular weakness in Zynga’s current valuation is that their games appeal primarily to casual gamers. While that is no bad thing in of itself, casual gamers who enjoy social gaming are likely to go where the next big thing is. Just like social networks themselves, a social games franchise can quickly erode if they make one significant mistake.

The Facebook of today can quickly turn into the Myspace of tomorrow. Similarly, that 7 to 9 billion dollar valuation could crumble with astonishing speed if Zynga’s average gamer feels that the grass is greener on the other farm.

ON TWITTER: $8-$10

What that means is that the established value of Twitter has to be based on the value it brings its users, but not necessarily its advertisers yet. That would suggest that the users may have to pay something for it to ever reach its valuation, at least until the advertising world figures out how to monetize that audience. The five-year-old Twitter has 200 million registered users.

The latest news that tech giants Google and Facebook are interested in Twitter and its huge audience and might be willing to pay up to $8 or $10 billion has kicked up the debate on the value of the messaging firm.  Twitter estimated their revenue at $45 million in 2010, but actually ended up losing money.  This year they’re estimating $100-110 million in profits. 

COMPARATIVE OF WEB COMPANIES

GOOGLE STILL LEADING SEARCH MARKET SHARE

But in time spent on these internet sites, Facebook has already beaten Yahoo and Google


Even in ad impression revenues, Facebook now takes the lead

one thing’s for sure though, facebook has way overtaken yahoo already by a long shot

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