Friday, September 29, 2006

MySpace could be valued at $15B

Analyst predicts social networking site could hit this mark in just 3 years from now, citing user/usage growth and international appeal.

Social networking site MySpace could be worth about $15 billion within three years, measured in terms of the value created for shareholders of parent company News Corp., a Wall Street media analyst forecast Wednesday.

RBC Capital analyst Jordan Rohan said he had come away from a meeting with Fox Interactive, the managers of MySpace, believing that "media investors may not fully appreciate what has already been done with MySpace or what may lie ahead." …

Just to remind that MySpace was acquired by Rupert Murdoch's News Corp. for $580 million just a year ago. Pretty good deal then, pretty good deal now.

RBC Capital justified the forecast on the basis of MySpace's "raw, unprecedented user/usage growth and they also added that it could be anything in-between $10B and $20B in the next years.

Full CNN story

In fact, we could pretty much agree with them, knowing that MySpace is amongst the top 10 web sites on the web, just behind Google (valued more than $100B), Yahoo and Microsoft’s properties, also valued tens of billions.

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