MySpace may be worth $10 - $20 billion
MySpace
could be worth around $15 billion within three
years, measured in terms of the value created for shareholders of
parent company News Corp. according to RBC Capital analyst Jason Rohan. (via
Reuters). MySpace was acquired by Rupert Murdoch's News
Corp. for $580 million less than a year ago. It now boasts more
than 90 million active users. comScore
reported today that MySpace ranks first among all sites in individual
video streams initiated by
Rohan said MySpace could demonstrate a
value of between $10 billion and $20 billion within a few years, justifying
the forecast on the basis of MySpace's "raw, unprecedented user/usage
growth." Rohan based his view on an extrapolation of estimates for
the value of Internet properties ranging from $1 billion for both MySpace
rivals YouTube and Facebook to the market capitalization of $120 billion
for Google.
Britain is adding 25,000 MySpace member profiles per day. Australia has 2 million unique users. MySpace France began public testing three weeks ago, he noted. MySpace is internally developing a MySpace Web application to run on mobile phones that should be launched in three to four months with a major U.S. carrier.
