How much does a social network user value? Economically, in dollars. It depends from company’s evaluation. Here’s the secrets of LinkedIn, Instagram, Facebook, Twitter and others.
LinkedIn LNKD is the heavyweight champ in this category. Based on its current market valuation and 202 million active accounts, investors are valuing it at $95 per user.
Instagram is at the bottom of the spectrum, despite the hysteria over its $1 billion sale to Facebook FB. At the time of the deal, it had 35 million users, meaning Facebook paid just $29 per Instagrammer.
Much of the social market, however, has settled neatly in between those two points. Facebook has a running value of $58 per user, while Pinterest and Twitter are right around $50 a head, based on recent financing rounds and network statistics. Working with that range, Goodreads’ 16 million users at $55 each would add up to a sticker price of $880 million.