Just yesterday I wrote about RockYou CEO, Lance Tokuda’s statement that he would turn down a $10 million offer for the SuperWall application. Around the same time, Valleywag posted that RockYou is looking to sell the company for between $200 million and $500 million. While it’s a big range, it would make sense that they would want to exit with the amount of buzz surrounding Facebook applications currently.
As I argued yesterday, RockYou has a fair amount of risk exposure, especially with their SuperWall application. According to TechConfidential.com, RockYou is receiving around 10 million page views a day. RockYou’s ad network earns money based on the number of application installations they produce. The only problem being that the majority of the companies paying for installs are not converting installs into paying users. This lack of conversion suggests a bubble environment.
Given that widgets in general have yet to successfully monetize, this would definitely be a good decision by RockYou to exit while on top. Is there a buyer who’s interested?
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"While it’s a big range, it would make sense that they would want to exit with the amount of buzz surrounding Facebook applications currently."I'm trying to follow the logic here, but I'm not sure I get it; if you are high on Facebook, and think it's only going to grow and get better, doesn't it follow that the time to sell would be, well, never?
Comment by Mark — October 5, 2007 @ 9:37 pm
“While it’s a big range, it would make sense that they would want to exit with the amount of buzz surrounding Facebook applications currently.”
I’m trying to follow the logic here, but I’m not sure I get it; if you are high on Facebook, and think it’s only going to grow and get better, doesn’t it follow that the time to sell would be, well, never?
Comment by Mark — October 6, 2007 @ 2:37 am