Putting a price tag on Facebook: quantifying the value of online social networks
Author: Aris, Annet ; Bradlow, Eric ; Metry, Robert ; Firth, Christophe ; Stegmann, HannoINSEAD Area: StrategyPublisher: Fontainebleau : INSEAD-Wharton Alliance 2010.Language: EnglishDescription: 41 p.Type of document: INSEAD CaseNote: Latest version available via https://publishing.insead.eduAbstract: The case puts the reader in the position of a fictional venture capitalist considering an investment in Facebook. As part of the investment decision process, the protagonist analyses the evolution of online social networks (OSN), the market profile and the various existing business models and valuation approaches. Questions are posed on what valuation methodology should be used to quantify the value of online social networks like Facebook. What assumptions should one use in a financial model and how will this affect the valuation? If one does invest, how and when might an OSN become profitable, and what type of return should an investor expect?Pedagogical Objectives: Understanding the dynamics of the Web 2.0; identifying and quantifying online revenue models; understanding and comparing financial evaluation methods for online businesses; executing a customer lifetime valuation.| Item type | Current location | Collection | Call number | Status | Date due | Barcode | Item holds |
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Asia Campus Archives | Consultation only | |||||
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Europe Campus INSEAD Publications Display | Consultation only | BC009113 |
Latest version available via <a href=https://publishing.insead.edu>https://publishing.insead.edu</a>
The case puts the reader in the position of a fictional venture capitalist considering an investment in Facebook. As part of the investment decision process, the protagonist analyses the evolution of online social networks (OSN), the market profile and the various existing business models and valuation approaches. Questions are posed on what valuation methodology should be used to quantify the value of online social networks like Facebook. What assumptions should one use in a financial model and how will this affect the valuation? If one does invest, how and when might an OSN become profitable, and what type of return should an investor expect?
Understanding the dynamics of the Web 2.0; identifying and quantifying online revenue models; understanding and comparing financial evaluation methods for online businesses; executing a customer lifetime valuation.
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