3 ms·
"the big bet is that some of those users. . . will some day pay a lot of money to Facebook. For what?" Surprised to see zero mention of "credits" in the articl
by aresant 14y ago
"the big bet is that some of those users. . . will some day pay a lot of money to Facebook. For what?"
Surprised to see zero mention of "credits" in the article.
Credits was $557-million in 2011 and expected to grow 4x this year.
That alone isn't going to justify the valuation, but still odd to leave out of the discussion.
ref - http://techcrunch.com/2012/04/22/40-billion-facebook-credits/ http://techcrunch.com/2012/04/22/40-billion-facebook-credits...
- jnorthrop 14y agoThere is also the consideration that they could extend their offerings. People spend a long time on Facebook, especially when compared with the amount of time they spend on Google. If Facebook wanted to extend into search, or business applications, or anything online really, they are working with a base of close to a billion customers. That's a billion users who they have the opportunity to introduce a new service to. Any potential new service could provide a more effective platform for ads.
- Retric 14y agoThat line of argument is much more effective for young companies. FB has plenty of cash to say buy duck duck go, but they are still focused on social and making less than 1$/user/month.
- Bootvis 14y agoWhy? They can change their focus. With all that money and talent they can build and buy almost anything.