Yahoo CEO Asks, “Facebook, what’s their revenue?”–Er, About $1 Billion Carol
Yahoo celebrated its 15 year anniversary yesterday and Yahoo CEO Carol Bartz decided that it would be the perfect time to take a swipe Facebook.
When asked why Yahoo wasn’t as hot as Facebook, she replied: "Facebook? What’s their revenue?"
Oh no she didn’t!
Well, as if on cue, Inside Facebook comes up with some compelling calculations that suggest Facebook will hit $1.1 billion 2010.
First, their calculations for 2009–keep in mind these are simply guestimates.
Then, estimating revenues for ads, partnerships, virtual goods, and such, they come up with their 2010 prediction:
A wide variety of sources we spoke to expect Facebook to pass $1 billion in revenue this year, possibly reaching $1.1 billion. This is significant growth, but likely still the start of the hockey stick.
And boy, it is some hockey stick!
The company will, in our view, gradually chip away at brand advertising spending on other big web sites, including Yahoo and MySpace. The optimistic case for Facebook, in terms of its brand advertising revenue, is that will get most of this advertising and bring in up to $20 billion per year, eventually.
$20 billion a year in revenue? That’s a big number, maybe one that will even get Bartz’s attention.