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Avatar Posted By: crimsongirl 47 days ago
Topic Type: News Story (Jump to http://www.technologyreview.com)
Category: Social Media
Long article in Technology Review outlines doubts (which many of us have) about the viability of the major social media networks. (Free registration required to read article.)

"Facebook is likely to lose $150 million this year, according to a January conference call heard by Kara Swisher of All Things Digital, a Wall Street Journal-affiliated site devoted to "news, analysis, and opinion about the digital revolution." That's based on projected earnings--before interest, taxes, depreciation, and amortization--of $50 million and an expected $200 million in capital expenses, including new servers.

"Revenues for MySpace parent Fox Interactive Media fell $100 million short of predictions this year, apparently leading to the dismissal of the chief revenue officer. And Google met with disappointment after paying $900 million in 2006 to get a piece of MySpace's traffic, buying the right to deliver ads for three years against keywords entered on the networking site."

And more in the article.
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