Social networking sites are on the rise and investors are taking notes. And this year, some of the Internet's good old boys were outdone by Facebook.
Facebook is set to end its year on a high note. A recent study from securitiesfirm Nyppex found that the social networking site’s value jumped 56 percent in the last six months or so, and is now worth more than giants like eBay andYahoo. Social startups in general have been experiencing success this year, and the likes of Twitter and Groupon (which we found out was worth $2 billion) have all seen climbing numbers.
Still, none of these sites can compete with the enterprise Facebook is becoming. It is now estimated to be worth approximately $41.2 billion and its continuing to grow at rates that put its competitors to shame. The study also shows that Facebook is easily besting original internet titans like Viacom and Time Warner; and all while altering its demographic – a recent infographic revealed that only 28 percent of current Facebook users are in college, as opposed to its beginnings as an exclusively student social hub.
“We try to be students of venture history, and we think this is a milestone event that’s taken place in the last six months,” says Nyppex managing member Laurence Allen. Allen also notes that Zynga and LinkedIn were two social sites that did not experience this growth trend. He suggested that Zynga may have lost some investors due to its reputation for curbing share transfers.
While its staggering value caps off an impressive year for Facebook, these new numbers add to the disappointing one Yahoo has had. The once-might company has laid off hundreds of employees, will be downsizing its web properties, and has struggled to remain a top search engine. And word that Facebook is officially worth more than Yahoo can’t help its investment prospects.
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