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BizReport : Internet : September 29, 2006

MySpace Will Be Worth USD15 Billion in Three Years

A US investment house claims that social networking website MySpace will have accumulated a value of USD15 billion within three years.

by Angelique van Engelen

Jordan Rohan of RBC Capital writes in a note to his institutional investment clients that he based his estimation on sites such as YouTube and Facebook which both are believed to be worth around USD1 billion and Google’s market capitalization of USD120 billion. Rohan says, not only MySpace’s international appeal is likely to lead to further success, but also its capacity to become an intellectual property distribution powerhouse. He praised its management team, saying their talent added credibility to his prediction.

NewsCorp paid USD 580 million for the site less than a year ago and almost immediately caught up on its lagging internet presence when it completed the purchase.

MySpace has 90 million active users worldwide. The UK alone grows with the phenomenal speed of 25,000 new MySpace users every day. Australia has 2 million unique users. MySpace France recently started off a fortnight ago.

Ross Levinson, the head of Fox Interactive Media, which owns the site, says he plans to continue to use hypertargeting campaigns, a marketing technique to reach more individuals and smaller groups. Rohan who follows the company on behalf of his clients said that MySpace is totally sold out for video advertising.

Tags: MySpace

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