Wednesday, April 12, 2006

Facebook: Deal or no deal?

No Deal.

Word is spreading fast that Facebook turned down an acquisition offer for $750 million because they’re holding out for $2 billion. Impressive considering News Corp purchased MySpace for $580 million last July. The question of whether they should have taken the $750 million offer is obviously impossible for most of us to answer. Regardless, what a great PR move on their part. Making it public that they turned down a $750 million offer and they’re holding out for $2 billion certainly benefits Facebook, in terms of attracting more subscribers and getting additional offers from possible acquirers. I would guess they have a number closer to $1 billion in mind and are publicly claiming they are holding out for $2 billion in hopes of meeting someplace in the middle, but who knows.

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