Friday, March 31, 2006

Facebook vs MySpace

Om has a follow up post on the recent activity with Facebook.

From the post:

"A few days ago there was a lot of chatter over Business Week story that Facebook was on the block , as long as the buyer was ready to pony up $2 billion.

I suggested that the founders of the company should have been prudent and taken the rumored $750 million offer. My argument was that since their traffic was starting to dip, why not follow the philosophy - a bird in hand is worth two in the bush. It was no reflection of the possibilities of the network, or how much money the network could make in the future.

So what did the Comscore/MediaMetrix data reveal? From December 2005 to February 2005, MySpace added 5 million unique visitors while, Facebook’s unique visitors declines by about 2 million - or about 16%.

Anyway Paul Kedrosky says it well, when he so pithily writes, “If paying four times as much for a smaller, slower-growing site whose main users leave in lock-step graduating cohorts every year isn’t mad, then I have no idea any more what is.”

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