Forrester analyst Charlene Li has an overview of the recent successful IPO of Japan’s largest social networking site, Mixi.
She crunches some numbers and tries to apply Mixi’s valuation formula to giants MySpace and Facebook.
A rough back-of-the-envelope would value MySpaceâ€™s 100 million users at US$1.86 billion and Facebookâ€™s 7.5 million users would be worth $139.5 million. Granted, the Iâ€™m not taking into account the multiplicative network value of additional members, so this is likely undervaluing the value of MySpaceâ€™s and Facebookâ€™s audiences.
$140 million valuation for Facebook? Someone should have given them that figure, before they turned down the rumored $1.4 billion buyout offer from Yahoo!