ifindkarma. elegance is refusal.

March 17, 2010

Is Facebook worth twice what Yahoo is worth?

Filed under: Uncategorized — Tags: , — ifindkarma @ 8:10 pm

A recent conversation on Twitter with Kelly Perdew revealed that…

  • Yahoo! serves 10B ads per day.
  • Yahoo! tracked 1.6m online users for 8 weeks and found that 90% made offline purchases with advertisers. Their stat according to Kelly? $1 ad spend on Yahoo! resulted in $10 of sales offline.
  • Yahoo!’s $6.5b in annual revenues make it currently worth $23 billion.
  • CEO Carol Bartz says Yahoo! has 600 million users, and “connecting to people is the bottom line.”

Which got me thinking.

Facebook always had pageviews, but now it has CASHFLOW thanks to Pages & LIKEs, and the ads that connect them.

Facebook LIKEs to do six impossible things before breakfast…
  1. Facebook recently figured out its business model, and passed $1 billion in annual revenues,
  2. So 2010 is a “serious year” for Facebook.
  3. But don’t get sentimental about it….
  4. Because Facebook’s revenues are still mostly ads.
  5. Then Facebook passed Google in traffic last week.
  6. As a result, Facebook could now be worth $40 billion.
Facebook now has much more usage than Yahoo (and the other 98 biggest Web sites combined), on the backs of 400 million users 500 million users. And thanks to Facebook Pages, Facebook will eventually make mo’ money than Yahoo! …

But wait, there’s more:
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4 Comments »

  1. Great post, Adam.

    Comment by investingmom — March 17, 2010 @ 9:59 pm

  2. Thanks Lara!And then I go into how ridiculous a lot of Facebook pages are:http://ifindkarma.posterous.com/top-10-ridiculous-facebook-pages

    Comment by Anonymous — May 19, 2010 @ 11:37 pm

  3. Loving all the posts, Adam. Couldn’t agree more on this and on the comments you made about Places.

    Comment by Anonymous — August 23, 2010 @ 7:03 pm

  4. Thanks Ryan!Facebook will soon have more visitors than Yahoo:http://techcrunch.com/2010/08/24/facebook-more-visitors-yahoo/And Gaga now has more followers than Britney:http://techcrunch.com/2010/08/24/gaga-queen-twitter/Coincidence? I think not.

    Comment by Anonymous — August 25, 2010 @ 3:17 pm


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