Rockyou Hype.

http://valleywag.com/tech/acquisitions/facebook-applications-chase-mark-zuckerbergs-shadow-307106.php

Looks like Rockyou  is trying to sell its self for  $200 to $500 million.    Given that the company only puts widgets into  facebook and myspace and has no real way of making meaningful revenue  I can’t see how they can ask for that much.  Rockyou could be kicked off Facebook  or cloned by facebook at any moment and replaced.   If Rockyou does figure out how to make money  facebook could just say give us 90% of your revenue or we will shut you down.        I think in the long run the biggest problem will come when  Myspace or facebook buys one of these big widget companies.    What would happen if myspace bought  a widget company that controlled a lot of the top widgets on facebook?    I can’t see that going over to well.

8 Responses to “Rockyou Hype.”

  1. jay Says:

    Rockyou is positioned ideally for today’s changing music industry – many independent artists including the ones featured on our site, use Rockyou as an effective and creative marketing tool to promote in an era where band revenue is made through promotion rather than on selling music. Is the asking price expensive, possibly, but the value it brings all independent musicians is priceless.

  2. Ryan Says:

    Jay,

    Sounds like something a marketing firm put together. Anyhow, how does Rockyou make money?

  3. jay Says:

    Rockyou is an asset based web-company meaning that the real value is in the real estate not the income. They dominate the market when it comes to slideshows and have critical mass membership base that caters to the two largest social communities on the net…their membership base satisfies a very lucrative niche – 15-35 that are internet, music, and tech savvy – if they are purchased, the real value will be in their database and the advertising earnings potential behind it, particularly if the purchaser has an established network in place.

  4. mitch Says:

    Jay: do you always sound like you’re selling something or do you work for them? At least disclose it.

  5. Markus Says:

    The problem is they don’t own that database of users, Facebook does. Facebook or myspace could just come along at any moment and say we are created our own slide shows and that would put and end to the company. There is just sooo much risk that a buyer wouldn’t want to spend 200 to 500 million for a company that could be gone tomorrow and has no presense other then free apps via other companies websites.

  6. Ryan Says:

    Jay, in your first post, you referred to Rockyou as “our site”, but the next post you said “they” several times. Are you a part of Rockyou?

    Also, what Markus said is key. You do not own any real estate. You are simply using what Facebook has generously allowed you to temporarily occupy.

  7. Minger Says:

    Rockyou has an lease of uncertain duration on someone else’s real estate. Though why did MySpace buy Photobucket??

  8. jay Says:

    Not part of Rockyou…part of another music site that uses these widgets

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