GOOG is looking at Facebook at a 2.3bil price. This could be a total joke on their part, but the source is solid.
I don't know how well this can be trusted, but just in case.......
I really don't think 2.3bil is happening...
The Wall Street Journal has reported that Yahoo is in talks to buy Facebook for $1 billion. Those talks might acquire more urgency after Google's $1.6 billion deal for YouTube.
Won't link to the WSJ story since it requires subscription but here is the story on another site: Yahoo Rumored to Buy Facebook
Just back on the 21st of last month the WSJ reported that MS was eyeballing Facebook.
This is my favorite part of that article:
During one series of talks with Microsoft, Facebook executives told their Microsoft peers they couldn't do an 8 a.m. conference call because the company's 22-year-old founder and chief executive, Harvard dropout Mark Zuckerberg, wouldn't be awake, says a person familiar with the talks. Microsoft executives were incredulous.
Maybe the big G doesn't mind dealing with people that don't wake up at 7am?
Does anyone else smell a bidding war between MS & G?
Funny. You might flip that around, eh?
During one series of talks with Facebook, Microsoft executives told their Facebook peers they couldn't do a 7 p.m. conference call because the company's 52-year-old group manager would already have left for the day, says a person familiar with the talks. Facebook executives were incredulous.
The "incredulous" part cuts both ways no matter what the facts. MS buying FB certainly doesn't sound good from an investor perspective.
Um, yeah. That's gotta be a joke. Why would Google offer more than double what Yahoo was going to give when Yahoo's valuation was probably over anyway?
If you'd said $1B or so, I'd have probably went for it...
I call bullshit
Maybe it is actually a complex pyscological ploy.
For example, what happens if MS & Y! are already looking at purchasing FaceBook, and Google show a bit of "interest" through a leaked source?
What do you think would be going through the minds of the people in the boardrooms of MS and Y upon hearing this news? (especially after G just buying YouTube)?
Do you think it could cause MS or Y! to overbid or rush into a deal that may be less than optimal, just because of fearing they may loose out (again) to Google?
What if Google has looked at facebook, decided they did not want it, but would be happy to encourage their competitors to buy it (esp. at an inflated price) because it would act as a distraction and keep their competitors from concentrating on Video and Search?
Foo, I think you have this one pegged.
My sources at YouTube tell me GOOG is going to buy Threadwatch for eleventy billion bucks. All stock. Just so Tabke couldn't pick it up.
that it was Danny buying TW.
eleventy billion bucks
I thought it was ... Danny was getting hired by Google to consult them on buying search and SEO related websites.
I heard that it is time for another cup of Tea. ;)
And I bet it'll be making more 5 years from now than YouTube is making at that point. :p
Of course, I'm assuming that the affiliate model is here to stay. >:-)
We have moved well into the frenzy zone if anyone is seriously considering buying Facebook for anything approaching a billion dollars.
YouTube, sure, it's a gamble that at least some big part of video consumption is moving online and YouTube is the leader. MySpace, maybe, if you don't pay too much and you think the community isn't going to just pick up and move on in four years.
But Facebook? By definition, the community is going to pick up and move on in four or five years. They are trying to reinvent themselves with the open registration, but that's a big gamble because takes away the exclusive club aspect that seems to be a big part of the site's appeal.
I don't get it. More than that, I don't like it, because I lived through the last post frenzy crash and burn, and I had been persuaded that it wouldn't happen again because this time around we were all grown ups following sound business models.
As the Social Site Madness Sale continues on I see very little mention of some of the wonderful similarities with our last Boom-Bust. It’s like it never happened and valuations of these enterprises blooms through the roof with little concern.
Doesn’t this sound familiar?
22-year-old founder and chief executive
10:02 GOOG Google: Rumors fly that search/video giant could be in the
market for a social network - Red Herring (425.76 -0.89) -Update-
Red Herring reports the search giant could be eyeing the number two social
network for a price of $2.3 bln, according to a rumor posted on the Silicon
Valley gossip site Valleywag on Tuesday. Google may need a site like
Facebook to become a power player in social networking. Sasa Zorovic, an
analyst with Oppenheimer, said it is a plausible scenario. "I would say that
jives with Google saying, ‘if we want to be number one and it means making
acquisitions, then we'll do acquisitions,'" said Mr. Zorovic. Google's own
social network offering, Orkut has been a hit in Brazil, but US and European
users have not warmed to the site. According to comScore Media Metrix, Orkut
had 351,000 unique U.S. visitors in August. On the other hand, Facebook,
which was also recently rumored to be in talks to be bought by Yahoo (YHOO)
for $1 bln, is growing quickly. In August, the site had nearly 15 mln unique
U.S. visitors, according to comScore. The acquisition of Facebook could also
help Google take on the formidable MySpace, a site that had more than 55 bln
unique visitors in August, according to comScore. Jordan Rohan, an analyst
at RBC Capital Markets said via email that a brewing Google and Facebook
deal is "hard to believe." Especially at the reported $2.3 bln price tag, he
said. "I don't think Facebook is worth as much as YouTube," wrote Mr.
Rohan... Briefing.com note: This rumor was originally posted yesterday on
Threadwatch.org, before ValleyWag ran it.
It's the name. I repeat: it's the name.
Relaunch it as GSpace and only a handful of people will ever say anything about it being "OrKut with a new name" and people won't care about that anyway.
It's GSpace. Rhymes with Gmail. Claim it is 100% interoperable with other social networking sites, such as the one in Brazil called Orkut. Whatever. But get rid of that name already.
such as the one in Brazil called Orkut.
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