In recent discussions surrounding the monetization of online platforms, Wikipedia, one of the most visited websites globally, has emerged as a focal point.
Wikipedia attracts an impressive 1.7 billion unique visitors each month, generating roughly 240 billion page views annually.
With this level of user engagement, Wikipedia ranks alongside major tech giants in terms of daily web traffic. If the platform implemented advertising, even conservatively, it could generate substantial revenue.
At an estimated Revenue Per Mille (RPM) of $5, Wikipedia could achieve $1.2 billion in yearly revenue. With operating costs estimated at $200 million annually, it could potentially see $1 billion in net profit each year.
Valuing Wikipedia based on a Price-to-Earnings (P/E) ratio of 25, similar to other tech companies, could position its market capitalization at $25 billion. However, a Price-to-Sales (P/S) ratio of 9 might yield a lower valuation of around $10.8 billion
These figures are supported by comparisons to similar platforms like Reddit, which was valued at $10 billion, and Twitter, which reached a market cap of $30-40 billion before its acquisition.
The hypothetical valuation of Wikipedia not only underscores the immense worth of user-generated content but also highlights the potential revenue streams untapped by its current non-profit model.
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