Modeling The True Value Of Social Networks: 2009 Edition
http://www.techcrunch.com/2009/06/04/the-true-value-of-social-networks-the-2009-updated-model/

A year ago we modeled out the true value of various social networks based on the idea that users in high-value online advertising markets like Japan, the UK and the U.S. were worth more (financially speaking) than those in lower value online advertising markets. Facebook had recently become the largest worldwide social network in terms of users, but based on our model MySpace was still by far the most valuable social network. We’ve now remodeled social network valuations based on current user numbers and Facebook’s most recent $10 billion valuation. The results are dramatically different.

Modeling The True Value Of Social Networks: 2009 Edition

The new model takes into account the dramatic rise of Facebook usage over the last year, the massive recent decline in MySpace usage, and less dramatic changes in the other social networks. We’ve also modeled out the various valuations with the old Bebo ($850 million) and LinkedIn ($1 billion) valuations as pivot points. We’ve also added Twitter to the list just for kicks.

social network model

recent data and modeling by TechCrunch - turns out MySpace still worth more than Facebook

This is a subject near and dear to entrepreneurs, maybe the dearest subject of them all. Founders start out with 100% of the company and every time they raise capital and/or issue stock and options to their management team, that number goes down.

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