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Can Mixi IPO Help Value MySpace And Facebook?

By: Andy Beal

Forrester analyst Charlene Li has an overview of the recent successful IPO of Japan's largest social networking site, Mixi.

Links: overview, Mixi

She crunches some numbers and tries to apply Mixi's valuation formula to giants MySpace and Facebook.

A rough back-of-the-envelope would value MySpaces 100 million users at US$1.86 billion and Facebooks 7.5 million users would be worth $139.5 million. Granted, the Im not taking into account the multiplicative network value of additional members, so this is likely undervaluing the value of MySpaces and Facebooks audiences.

$140 million valuation for Facebook? Someone should have given them that figure, before they turned down the rumored $1.4 billion buyout offer from Yahoo!

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View All Articles by Andy Beal

About the Author:
Andy Beal is an internet marketing consultant and considered one of the world's most respected and interactive search engine marketing experts. Andy has worked with many Fortune 1000 companies such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian.

You can read his internet marketing blog at Marketing Pilgrim and reach him at [email protected].

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