Archive for the ‘Research’ Category

Interesting Facebook Application Valuations

Tuesday, January 15th, 2008

CenterNetworksAs you know by now, Linking Universe is nearly finished developing the first true business application for the Facebook community. We are seeing a lot of opportunity in the Facebook environment and have high hopes for our ability to succeed based on our research and market evolution.

Take for instance the article posted at CenterNetworks this week. Written by Allen Stern, the article discusses the lucrative valuations of the most popular Facebook applications.

The article is irreverently titled ‘Screw Winning the Lottery - Just Make a Facebook App and Get Your Millions Now!’. Stern compares the opportunity in building Facebook applications to winning the lottery, but speculates that the odds are better if you build for Facebook.

Stern references Adonomics, a Facebook analytics company that tracks application usage and has assembled a list of top apps and their valuation. Of particular interest is Stern’s recognition that there are 71 Facebook applications listed with a valuation of over one million dollars. The top ten are over 5 million, with the number-one spot suggesting a valuation of just over 28 million.

While these numbers are speculative, and subject to some scrutiny, they are based on an algorithm that includes potential ad revenue. In support of the valuations offered, an anonymous reader claims to be a developer for one of the apps ‘high in the list’, and says that their expected ad revenue for the coming year will be in the millions.

Linking Universe is excited to be a part of the Facebook community. We feel that our application is uniquely positioned to rise among the leading apps because we are the first full-featured business application with legitimate value. And while throwing sheep at each other is fun, we feel that legitimate business tools will appeal to the greater population of Facebook, and that Linking Universe will continue to succeed as users migrate from simple social networking to Business Relationship Management.

Click Here to find the article online.

Dot Com Fever Warming Up. Again

Wednesday, October 17th, 2007

International Herald TribuneThe International Herald Tribune today posted an interesting article about what it calls ‘Dot Com 2′.

The article talks about the rush to buy audience building technologies such as Facebook at extremely high valuations because of perceived long term values.

According to the article, the social networking website Facebook is currently begin valued at 15 billion dollars. That’s a remarkable valuation. Google’s own public valuation is bringing in more than $600 per share on the open market, causing some to wonder if this stock is unstoppable.

Internet properties such as Linking Universe are being judged, in part, for their ability to garner an audience. The volume of customers a property can collect is being considered a part of the valuation, and not necessarily because of the revenue it can generate. While revenue is king when it comes to establishing a traditional valuation, big investors such as Microsoft, Google, and Yahoo! are considering the opportunity to leverage large crowds of people in advertising strategies and online marketing.

It appears that the original ‘dot-com’ bubble burst, it was a result of investors asking ‘how is this going to make money?’, and not really coming up with an answer. Companies like Google have now proven that money, and a lot of it, can be made by focusing on building and attracting large audiences. The social network phenomenon has proven this success, and while some investors remain bewildered, others are jumping in with a new understanding of how the Internet can be a lucrative investment ground.

Our own research indicates that the social networking phenomenon will not only continue to grow, but will experience a lucrative migration toward business networking, where users will be concerned with growing their social network, and turning their network of friends into a network of customers, resources, and introductions.

Linking Universe is a social network for business. Watch this page for more information, or Click Here to contact us. Information is provided only to qualified investors at this time.