Why do websites like Youtube and Facebook sell for so much money?

[Craig M]

What revenue does it generate? I can see some ads here and there on Facebook but after that what else? I rarely see ads hosted by the site if any on youtube. What gives? Tehy both sold for BIG moola!
My only reasoning is those ads are that expensive?

[Josh]

Well, there is a LOT of ad revenue. Even though there is only a few ads, there are a lot of visitors.
Next, when you are purchasing a web site, you also must purchase the hardware and bandwidth that the web site uses. This is another cost of the site.
Finally, part of the money is due to expandability. If Google wanted to put more ads on Youtube, they certainly could and they would not see a loss of visitors.

[MikeG]

The ads that are presented in all of those sites make millions. So if those sites are sold to other companies they can sell them with the ads for billions.

[huck_pogi]

having a large amount of user base that those sites already have prior to being bought by the big companies.

the big companies bought them for their large user base (big market, many potential customers for the big companies). once they bought those sites, they also capture those site's users. they could then use the existing technology to introduce their products to the sites' users.

and also the ads revenue it could give.

hth
hucky

[b_mannie]

because there well know and lots of people know about them.

[synndicate777]

because advertising sells. thats the plain and simple truth.