Facebook revenue doubles to $1.6 billion
If you ever needed any proof that social networking is big business, just look at Facebook’s leaked results. $1.6 billion in revenue in the first six months of the year. $1.6 billion. That’s double what it earned last year.
Net income for the six months came to almost $500 million. It’s impressive, considering just a few years ago we were all wondering how Facebook was ever going to make any money at all.
And, no, contrary to the occasional Facebook rumour, usually accompanied by lots of capital letters and exclamation points for emphasis, it wasn’t going to be by charging for access to Facebook. Instead the company went down the route of advertising and tie-ins with games publishers.
Look how it’s all panned out for the site.
Back in 2006, when Yahoo offered $1 billion for Facebook and was turned down, some may have wondered whether it was the right choice. When Microsoft stumped up $20 million for a tiny stake, valuing the firm at $15 billion, there was debate about over-valuing Facebook.
And now, analysts are valuing the site at $80 billion. Mark Zuckerberg must be laughing and doing the “I told you so” dance every night. Possibly on a massive pile of money. And you couldn’t really blame him either.
The site has clocked up 750 million users – a powerful draw for advertisers, and a potential problem for sites such as Google and Yahoo. Google has already tried to get in on the act with Google+, although it remains to be seen just how popular it will become among legions of entrenched Facebook users.
It’s inspired a movie, numerous books and created a whole new marketplace for apps.
Facebook has already outlasted many of the predictions for its shelflife, and continues to gain users. Rivals such as Bebo and MySpace could only dream of reaching the dizzying heights of Facebook’s users figures. And all this despite the fact that it’s had some pretty negative press about privacy and how it shares its users’ details.
Not bad for a site that started out in a college dorm.