Comments on: Ning wants to be the "Intel inside" http://www.mathewingram.com/work/2007/07/10/ning-wants-to-be-the-intel-inside/ ... at the intersection of media, technology, business and the web Sun, 07 Sep 2008 21:24:38 +0000 http://wordpress.org/?v=2.5.1 By: Brian http://www.mathewingram.com/work/2007/07/10/ning-wants-to-be-the-intel-inside/#comment-285520 Brian Wed, 11 Jul 2007 02:16:13 +0000 http://www.mathewingram.com/work/2007/07/10/ning-wants-to-be-the-intel-inside/#comment-285520 Hi Matthew ... Great post. My question for both Ning and Facebook is around the business model and how it scales. I think even Facebook is facing a challenge on how to truly scale their model (in a google or ebay sense). If you read about Facebook's recent hires and the recent stories, the revenue scale story isn't sound yet. Facebook is doing somewhere north of $100mm in revenue at a $30mm profit, which is very nice. I think there is a real debate about how to get that to a billion+ at those margins. Ning will also face these issues, and maybe even more so since they're segmented across several social networks and advertising isn't the core value proposition, like Facebook has with its 27mm+ members. ^ brian Hi Matthew …
Great post. My question for both Ning and Facebook is around the business model and how it scales. I think even Facebook is facing a challenge on how to truly scale their model (in a google or ebay sense). If you read about Facebook’s recent hires and the recent stories, the revenue scale story isn’t sound yet. Facebook is doing somewhere north of $100mm in revenue at a $30mm profit, which is very nice. I think there is a real debate about how to get that to a billion+ at those margins.

Ning will also face these issues, and maybe even more so since they’re segmented across several social networks and advertising isn’t the core value proposition, like Facebook has with its 27mm+ members.

^ brian

]]> By: Mark http://www.mathewingram.com/work/2007/07/10/ning-wants-to-be-the-intel-inside/#comment-285471 Mark Wed, 11 Jul 2007 00:46:33 +0000 http://www.mathewingram.com/work/2007/07/10/ning-wants-to-be-the-intel-inside/#comment-285471 I'd value them like Six Apart, since Ning is doing for social networks what SA has done for bloggers. I’d value them like Six Apart, since Ning is doing for social networks what SA has done for bloggers.

]]> By: Gina http://www.mathewingram.com/work/2007/07/10/ning-wants-to-be-the-intel-inside/#comment-285354 Gina Tue, 10 Jul 2007 19:49:28 +0000 http://www.mathewingram.com/work/2007/07/10/ning-wants-to-be-the-intel-inside/#comment-285354 I think you are right on. People don't want a MySpace or Facebook network, they want their own network. And whoever can provide the plumbing best will win. Check out www.nexo.com for another approach to enabling groups of people to network. It provides social network, group website and group email for any group you create. I think you are right on. People don’t want a MySpace or Facebook network, they want their own network. And whoever can provide the plumbing best will win. Check out http://www.nexo.com for another approach to enabling groups of people to network. It provides social network, group website and group email for any group you create.

]]> By: Mathew http://www.mathewingram.com/work/2007/07/10/ning-wants-to-be-the-intel-inside/#comment-285313 Mathew Tue, 10 Jul 2007 18:38:02 +0000 http://www.mathewingram.com/work/2007/07/10/ning-wants-to-be-the-intel-inside/#comment-285313 Thanks, Umair. I agree that the valuation for Ning does seem a little on the steep side, and without a lot of evidence to support it. On the other hand, many people (including me) thought MySpace was wildly overvalued when News Corp. bought it, and that Yahoo was crazy to offer $1-billion for Facebook, but I think they have been proven wrong. Thanks, Umair. I agree that the valuation for Ning does seem a little on the steep side, and without a lot of evidence to support it.

On the other hand, many people (including me) thought MySpace was wildly overvalued when News Corp. bought it, and that Yahoo was crazy to offer $1-billion for Facebook, but I think they have been proven wrong.

]]> By: umair http://www.mathewingram.com/work/2007/07/10/ning-wants-to-be-the-intel-inside/#comment-285306 umair Tue, 10 Jul 2007 18:26:20 +0000 http://www.mathewingram.com/work/2007/07/10/ning-wants-to-be-the-intel-inside/#comment-285306 hey mathew, nice post. i think you are spot on - i would just point out that most investors would be loath to give ning such a steep valuation without a bit more evidence that the strategy is seeing some kind of traction. hey mathew,

nice post.

i think you are spot on - i would just point out that most investors would be loath to give ning such a steep valuation without a bit more evidence that the strategy is seeing some kind of traction.

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