Bebo To Be Bought?

It is enough to make the average person sick. How does a company with a name like Yahoo! get a valuation in tens of billions of dollars. Sure, we all use Yahoo! so this is not such a stretch. But bebo? Worth north of a billion dollars? Amazing.

I want to start a company called harpo or groucho. I am sure they will fetch a hefty sum in the future. I will set my price at $2 billion. I am also aware that these names are probably taken so I didn't even bother to do a web search.

So what are my sources for this "rumored" acquisition? TechCrunch of course. The site says that either Google or MySpace is about to make a play for for the social media company and that the price could go to $1.5 billion!

Here is the most amazing part. Quantcast says bebo has 1.7 million average monthly unique visitors in the US. Alexa says the site has 11% of its traffic from the US. This means the total # of worldwide visitors each month is possibly around 15.5 million. That comes out to about $65/unique monthly visitor at a billion dollar valuation.

An impressive valuation if you ask me. Also, I am not aware of the revenue this site generates so there could be more to it than meets the eye.

If Google makes the purchase, one wonders if it will be in response to Microsoft/Yahoo! and if this will be one of a string of rapid acquisitions Google will make to try to increase its user base.
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About this Entry

This page contains a single entry by Rich Tehrani published on February 6, 2008 8:10 PM.

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