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dre · 03-30-2006, 10:27 AM

Facebook.com is for sale, and only for $2 billion.

http://www.businessweek.com/technolo...327_215976.htm

CP Mr Ofevaw · 03-30-2006, 11:40 AM

I'm gonna call it a bluff... This is the old M&A trick where you try and run up the value until you make people say "that's absurd", at which point you back it down slightly and sell. This method works, and it usually works good... A prime example is Skype.

At this point, I'm not ready to call the $2B request absurd, so don't be surprised if it sneaks up to $3B or even $4B before backing down.

I just have to wonder who is going to buy it, it seems every company that was interested in a social network has already aqcuired one (or two).

Jeff · 03-30-2006, 12:33 PM

Either way they are going to make a lot of money. It said that they turned down a 750Million dollar offer. Not bad for two years work.

GriZzly · 03-30-2006, 03:13 PM

A bargain at twice the price

adamg · 03-31-2006, 09:11 AM

How much profit do they make? I wonder why its so popular. when I tried to get on the website to have a look around I had to sign up. How shody is that, I should be able to browse without signing up.

they should have took the $700m offer and ran. Myspace cost murdoch $580m.

dre · 03-31-2006, 10:41 AM

Quote:

they should have took the $700m offer and ran. Myspace cost murdoch $580m.

I was thinking along those lines too. Myspace has more users so for facebook to have less users and not take the bigger offer is weird.

gemini_bwoy · 03-31-2006, 08:37 PM

Quote:

Originally Posted by adamg

they should have took the $700m offer and ran. Myspace cost murdoch $580m.

I disagree, Facebook has one important thing that MySpace doesnt and that is a Proper TARGET AUDIENCE. Meaning:College Students

An on Myspace, anyone with or without an account can View the site
but with Facebook, only College Students can view, only INCREASES the target AUDIENCE and CTR etc, with IMO is the number one factor in today internet industry. Especially with Internet Ads, being the major money maker online.

bbalfour · 03-31-2006, 08:48 PM

Yeah it is a targeted audience, but go talk to some of the college students who use facebook. A lot are surprised to hear that facebook even has ads on the site...thats how oblivious they are to them.

Anyways, I posted an extensive explanation on why I don't think $2 billion is worth it, but I wouldn't be surprised if it went for around $1.5 on my blog.

See here : http://www.brianbalfour.com/?p=30

thenewwallstreet · 03-31-2006, 09:15 PM

While I don't know that they will be able to sell their site for $2 billion, I wouldn't be surprised to see them get close to that amount. They have targeted a specific audience (college students) and have done an incredible job of growing their user base. Their site is extremely "sticky," users spend tons of time sifting through pages, its not one pageview and done. This kind of traffic is veryvaluable and someone will pay a good amount of money to acquire them.

Drew · 04-01-2006, 12:02 AM

You guys have to be kidding me. I realize that large traffic flow targeted at a single audience is worth a lot of money, but $2B? That's how much Donald Trump is worth. That's MORE than Mark Cuban is worth. How can anyone possibly expect to get their return on that investment?

adamg · 04-02-2006, 11:39 AM

If only College Students can view what happens when they leave college.

If they can still view, the chances are they will leave (or stop using) the site anyway when their new group of non college friends can't join the site due to the restrictions.

Where as myspace has them users well for life (unless they cancel the account) and they will keep coming back for more.

NeeJam · 04-02-2006, 11:46 AM

$2 Billion is way to much for facebook, i live in the uk and ive only heard about it from this site.

I have also only heard of myspace from this website but i did some research into them. So i kno abit about them.

When myspace was sold for £580million that was a good deal and even though it doesnt have a real TARGET AUDIENCE it has alot of members.

Facebook = Target Audience = Not as many members as myspace = $700million deal was well worth it. But i heard it was in excess of $750million but if they are holding out for $2 billion then they will have to wait a long time and probably start expanding extremely quickly.

I think to get $1.4 Billion for facebook they wil lhave to do alot more expanding and fat but $2 Billion dollars i think is going to be unachieveable unless they expand across the globe and get alot of members.