I'm not sure that billion figure is right. It might be cumulative revenues to date. Most estimates I'm finding since posting that seem more like 400-700 million for 2003.
See my message #164956 for likely more accurate numbers.
That's 1/3 to 1/2 Yahoo's revenue, so I'm sure by wall street logic, they are worth half as much or a little more with better margins.
As to more advertisers, I don't know. maybe they're hoping to be the yellow pages. That new service froogle.com might be part of their plan. Maybe when you type "flowers" into their site, they will pull your IP (for geo information) and then give a list of all flower stores in your area (paid inclusion).
EDIT: Or maybe if you type in sex it will pull up the names and addresses of all the local hookers. Would seem to be alot of money in that.
A fool and his money are soon elected.