Presentation is loading. Please wait.

Presentation is loading. Please wait.

CHAPTER FOUR CASE STUDY P. 38 JOSH STEGEMANN How Do You Value Friendster?

Similar presentations


Presentation on theme: "CHAPTER FOUR CASE STUDY P. 38 JOSH STEGEMANN How Do You Value Friendster?"— Presentation transcript:

1 CHAPTER FOUR CASE STUDY P. 38 JOSH STEGEMANN How Do You Value Friendster?

2 Major Points Jonathon Abrams: Friendster creator Laid off from Netscape, financial troubles Friendster founded in 2002, social networking site 5 million users, 50,000 page views a day Free service, non revenue generating Valued at $53 million by Benchmark Capital Currently looking into adding paid subscriptions Google offered $30 million for Friendster

3 How could you use efficiency IT metrics to help place a value on Friendster? Web Traffic- 5 million users, 500,000 web views per day System Availability- 24 hour social networking site Response time- instant feedback, high speed connections Efficiency- performance of the system, Do things right

4 How could you use effectiveness IT metrics to help place a value on Friendster? Usability- easily navigated site, number of clicks Conversion rates- Users switching from other sites like Facebook and MySpace Financial- No ROI yet, paid subscriptions could help determine Effectiveness- impact IT has on business processes, Doing the right things

5 Explain how a venture capital company can value Friendster at $53 million when the company has yet to generate any revenue? IT Efficiency- click through rates, number of users IT Effectiveness-potential revenue Web traffic analysis- page views, length of stay on site, date and times of visits, demographics

6 Explain why Google would be interested in buying Friendster for $30 million when the company has yet to generate any revenue? IT effectiveness and efficiency Growth has peaked, value dropping Buy cheap, continue with registration fees

7 Current Information Top 20 global website based on traffic #1 social networking site in Asia, expansion into foreign markets In Philippines, transfer money using GCASH

8 Conclusion Thank You! Any Questions?


Download ppt "CHAPTER FOUR CASE STUDY P. 38 JOSH STEGEMANN How Do You Value Friendster?"

Similar presentations


Ads by Google