Social media sites finally heading for profits
Facebook owner Mark Zuckerberg has revealed that the site now has over 300 million users, rising at a rate of 5 million per week. More importantly he said the website has become cash flow positive, well ahead of its target to do so by mid-2010.
One of the main criticisms of sites like Facebook is their lack of a clear business model that will generate long-term profits. Many have done a good job of raising investment but few have managed to give shareholders a return. A solid advertising structure along with its size means Facebook may soon be able to do so.
In similar news Twitter is closing a round of funding that will see it valued at $1bn. The site has also changed its terms and conditions to allow for advertising for the first time, giving the potential for a revenue stream in the months ahead.