Rumours are going around that Yahoo may be buying the video sharing social network site Bebo.Com for US$1 billion, but are Bebo really worth that much?
The San Francisco, California based next generation social network, there words, may be the next Billion dollar acquisition for Yahoo, although Bebo is basically a social network it is also a video sharing site, something that yahoo really need to add to its portfolio after Google brought YouTube.
Techcrunch.Com has had a look at the Comscore stats for Bebo and compared then to MySpace and Facebbok, Although MySpace is way ahead with 107 million unique monthly visitors a month (March 2007) Bebo at 13.7 million is not that far behind Facebook with its 32 million visitors. The advanage of Bebo is that it's visitors look at on average 20 pages per day each, and due to the nature of video sharing sites these, unlike MySpace or Facebook are not the same pages each time, which greatly increasing the benefit of the site to advertisers.
From the Comscore data Techcrunch found that Bebo today is about the same size that Facebook was in May 2006 when Yahoo valued Facebook at US$1.6 billion. So the US$1 billion that Yahoo is offering Bebo is a bit on the low side, but still works out at US$73 per unique visitor.
The reason that Yahoo is not offering more is probably due to Bebo not growing at as fast a rate as Facebook or indeed MySpace is currently growing at.
If I was the owners of Bebo and these rumors are true, then I would take the US$1 billion and try and find something else to do with my time.