Google+ 's Rise Will Affect The Valuation Of Facebook

The rapid development of Google+ has posed a threat to Facebook. If the service continues to maintain this growth rate, it will affect Facebook's valuation. Facebook finally has a real opponent. At least, the social media investor Sergio Monsalve thinks so.

The analysts think that the early indications of Google + shows that this social service is heading in the right direction. The service has attracted more than 25 million users since it was released in June. Even Facebook's CEO Mark Zuckerberg has already begun to use this service.

However, many people are skeptical about Google +. They are concerned about if this service can continue to maintain the initial growth rate. Others remain optimistic. Many industry insiders believe Google+ is better than Facebook in the imitation of the real-life social activities. If Larry Page's creation can maintain the pace of development, it is expected to be a threat to Facebook at a critical time.

It is generally expected that Facebook will be listed in 2011. Although it is invincible for now, but if there is a real opponent, it is bound to affect the company's valuation. Compared with Facebook, the content of Google+ is richer and more interesting.

According to the U.S. market research firm, Facebook's advertising revenue this year will reach $ 4.05 billion. In addition, a U.S. market research firm's data showed U.S. users stay on Facebook reach 434 minutes monthly. The users reach 750 million worldwide. Calculated by the above data, the user stay one minute on Facebook will generate about 10 cents of income, not counting money through third-party games as well as income of credit. As the field of advertising budgets gradually shifts to the Internet, Facebook's advertising revenue in the next year will reach $ 574 million.

Because Google + was only released for two months, so specific effects on Facebook is also difficult to quantify. But venture capitalists believe that if Google + continue this growth momentum, it will have an impact on Facebook's valuation. There are indications that, Facebook's valuation in the secondary market has peaked. Although it may has little relationship with Google +. It is reported that the U.S. marketing services giant Interpublic Group has holdings of Facebook in half.

The reason why venture capitalists bullish on Google + is that this service is expected to integrate with Google's core search technology. In addition, Google only charge 5% to developers, well below the 30% of Facebook.