Purpose: The thesis aims to create an understanding to set the foundation of the social media landscape covering its historical evolution, driving mechanisms and business models. Methodology: The thesis has a qualitative character and an explorative art of discovering the social media landscape. A theoretical framing of the thesis is inspired by Christensen and Raynor. Theoretical perspective: Theories used concern business models more specifically “Free”, Swarm business principles, Value network, Relational capital, Innovation economy, Wikinomics and Opportunity cost. Empirical foundation: The primary data is gathered through interviews and the secondary data is gathered through articles and international press. Conclusions: The result of this study is that six different phases of the growth of social media can be distinguished as well as specific driving mechanisms more precisely Technological evolution, Globalization, Knowledge sharing, Famousness, Optimal Value Efficiency, Networking, Community feeling and Corporations. Regarding the business models seven different combinations has been found in terms of economic value; Ad-supported, Freemium, Ads (Plus), Freemium Plus, Freemium & ads, Freemium, ads & plus, Gift economy. The hidden values are recognized as the value of: free, change, trust, socializing, collaboration, content, access and the value of opportunity
