Monday, November 8, 2010

What's Twitter Worth?

The value of many private social media companies like Twitter, facebook, Zynga and the like is oft-debated. Smart Money recently had an article analyzing the potential values of these companies should they be brought to public market.

This is all very interesting because it shows the type of power and leverage that Gen Y is having on business. After all, the lofty valuations that these companies are receiving are due in large part to their extremely large user base - primarily members of Gen Y. While much of their value relies heavily on the network effect of adding new users and generating increasing amounts of revenue via ads and other means, the amount of people using their product indicates that the potential value that the market places on each company may be more believable than the values placed on Internet companies during the tech boom - only time will tell!

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