Facebook worth $ 41 billion

Just an hour before Facebook is set to announce its 'gmail killer', it now ranks as the third largest web company, with an estimated valuation of USD 41 billion which is greater than EBay.

According to Bloomberg, the social network's latest valuation, based on the selling price of shares on SecondMarket, an exchange for privately held companies, makes it the country's third-largest online business after Google

(USD 192.9 billion) and Amazon (USD74.4 billion).

Since Facebook has yet to go public, its forecasted revenue and worth in the public market is all still theoretical. Facebook, which expects sales of at least USD 1.4 billion this year, has called the figure "fundamentally speculative."

Based on recent private-market transactions, Facebook has a total estimated value of USD 41 billion, exceeding eBay's USD 39.4 billion in market capitalisation.

The only two web companies worth more than Facebook are Amazon, at USD 74.4 billion and Google, Inc., at USD 192.9 billion.

Today's value of Facebook comes from an "off-the-record" conversation that Bloomberg BusinessWeek's Brian Womack had with someone who had access to recent transaction data on SecondMarket.com.

Now if Facebook were trading on an exchange that the public could access, the size of the company's total market capitalization might increase over the course of the trading day depending on the exact details that Mark Zuckerberg announces at today's 10 am PST press conference.

Facebook's value has been growing for almost three years now, but it seems to be accelerating recently.

While there's no doubt that Facebook is one of the biggest websites and one of the biggest companies of the moment, it's hard to know if the company's estimated valuation has anything to do with its actual worth.

And there is no way of knowing that until Facebook finally files for an initial public offering.

Based on what Facebook has been saying so far, that may be at least a couple of years from now.

The reason why Facebook is not jumping ahead and filing for an IPO is that, while the company is growing fast, its revenue is still not spectacular.

Facebook could bring in close to USD 1.5 billion or as much as USD 2 billion in revenue this year, depending on who's doing the estimates.

Facebook's users have increased by more than two-thirds since September 2009, when it had 300 million members.

In March, the company surpassed Google as the most visited Web site in the US, according to research firm Hitwise.

Miscellaneous information on search engines

At the beginning of 2004, a new and mysterious term appeared among seo specialists – Google SandBox. This is the name of a new Google spam filter that excludes new sites from search results. The work of the SandBox filter results in new sites being absent from search results for virtually any phrase. This even happens with sites that have high-quality unique content and which are promoted using legitimate techniques.

The SandBox is currently applied only to the English segment of the Internet; sites in other languages are not yet affected by this filter. However, this filter may expand its influence. It is assumed that the aim of the SandBox filter is to exclude spam sites – indeed, no search spammer will be able to wait for months until he gets the necessary results. However, many perfectly valid new sites suffer the consequences. So far, there is no precise information as to what the SandBox filter actually is. Here are some assumptions based on practical seo experience:

- SandBox is a filter that is applied to new sites. A new site is put in the sandbox and is kept there for some time until the search engine starts treating it as a normal site.

- SandBox is a filter applied to new inbound links to new sites. There is a fundamental difference between this and the previous assumption: the filter is not based on the age of the site, but on the age of inbound links to the site. In other words, Google treats the site normally but it refuses to acknowledge any inbound links to it unless they have existed for several months. Since such inbound links are one of the main ranking factors, ignoring inbound links is equivalent to the site being absent from search results. It is difficult to say which of these assumptions is true, it is quite possible that they are both true.

- The site may be kept in the sandbox from 3 months to a year or more. It has also been noticed that sites are released from the sandbox in batches. This means that the time sites are kept in the sandbox is not calculated individually for each site, but for groups of sites. All sites created within a certain time period are put into the same group and they are eventually all released at the same time. Thus, individual sites in a group can spend different times in the sandbox depending where they were in the group capture-release cycle.

Typical indications that your site is in the sandbox include:

- Your site is normally indexed by Google and the search robot regularly visits it.

- Your site has a PageRank; the search engine knows about and correctly displays inbound links to your site.

- A search by site address (www.site.com) displays correct results, with the correct title, snippet (resource description), etc.

- Your site is found by rare and unique word combinations present in the text of its pages.

- Your site is not displayed in the first thousand results for any other queries, even for those for which it was initially created. Sometimes, there are exceptions and the site appears among 500-600 positions for some queries. This does not change the sandbox situation, of course.

There no practical ways to bypass the Sandbox filter. There have been some suggestions about how it may be done, but they are no more than suggestions and are of little use to a regular webmaster. The best course of action is to continue seo work on the site content and structure and wait patiently until the sandbox is disabled after which you can expect a dramatic increase in ratings, up to 400-500 positions.

Common search engine principles

To understand seo you need to be aware of the architecture of search engines. They all contain the following main components:

Spider - a browser-like program that downloads web pages.

Crawler – a program that automatically follows all of the links on each web page.

Indexer - a program that analyzes web pages downloaded by the spider and the crawler.

Database– storage for downloaded and processed pages.

Results engine– extracts search results from the database.

Web server – a server that is responsible for interaction between the user and other search engine components.

Specific implementations of search mechanisms may differ. For example, the Spider+Crawler+Indexer component group might be implemented as a single program that downloads web pages, analyzes them and then uses their links to find new resources. However, the components listed are inherent to all search engines and the seo principles are the same.

Spider. This program downloads web pages just like a web browser. The difference is that a browser displays the information presented on each page (text, graphics, etc.) while a spider does not have any visual components and works directly with the underlying HTML code of the page. You may already know that there is an option in standard web browsers to view source HTML code.

Crawler. This program finds all links on each page. Its task is to determine where the spider should go either by evaluating the links or according to a predefined list of addresses. The crawler follows these links and tries to find documents not already known to the search engine.

Indexer. This component parses each page and analyzes the various elements, such as text, headers, structural or stylistic features, special HTML tags, etc.

Database. This is the storage area for the data that the search engine downloads and analyzes. Sometimes it is called the index of the search engine.

Results Engine. The results engine ranks pages. It determines which pages best match a user's query and in what order the pages should be listed. This is done according to the ranking algorithms of the search engine. It follows that page rank is a valuable and interesting property and any seo specialist is most interested in it when trying to improve his site search results. In this article, we will discuss the seo factors that influence page rank in some detail.

Web server. The search engine web server usually contains a HTML page with an input field where the user can specify the search query he or she is interested in. The web server is also responsible for displaying search results to the user in the form of an HTML page.