1. How Do You Value Friendster?
Chapter Four Case Study
P. 38
Josh Stegemann

2. Major Points Jonathon Abrams: Friendster creator
Laid off from Netscape, financial troubles
Friendster founded in 2002, social networking site
5 million users, 50,000 page views a day
Free service, non revenue generating
Valued at $53 million by Benchmark Capital
Currently looking into adding paid subscriptions
Google offered $30 million for Friendster

3. Web Traffic- 5 million users, 500,000 web views per day
How could you use efficiency IT metrics to help place a value on Friendster?
Web Traffic- 5 million users, 500,000 web views per day
System Availability- 24 hour social networking site
Response time- instant feedback, high speed connections
Efficiency- performance of the system, Do things right

4. Usability- easily navigated site, number of clicks
How could you use effectiveness IT metrics to help place a value on Friendster?
Usability- easily navigated site, number of clicks
Conversion rates- Users switching from other sites like Facebook and MySpace
Financial- No ROI yet, paid subscriptions could help determine
Effectiveness- impact IT has on business processes,
Doing the right things

5. IT Efficiency- click through rates, number of users
Explain how a venture capital company can value Friendster at $53 million when the company has yet to generate any revenue?
IT Efficiency- click through rates, number of users
IT Effectiveness-potential revenue
Web traffic analysis- page views, length of stay on site, date and times of visits, demographics

6. IT effectiveness and efficiency Growth has peaked, value dropping
Explain why Google would be interested in buying Friendster for $30 million when the company has yet to generate any revenue?
IT effectiveness and efficiency
Growth has peaked, value dropping
Buy cheap, continue with registration fees

7. Current Information Top 20 global website based on traffic
#1 social networking site in Asia, expansion into foreign markets
In Philippines, transfer money using GCASH

8. Thank You! Any Questions?
Conclusion
Thank You! Any Questions?