Facebook for $2 billion...puh-leez
No one is doubting that Facebook, the outrageously popular collegiate social-networking site, would be an attractive buy for the right media suitor. What they're questioning, however, is the up to $2 billion Business Week is reporting as the company's desired price tag.
Many bloggers have responded with a big, "puh-leez," especially when considering that News Corp. bought the even more popular MySpace site for $580 million just last summer.
Blog community response:
"Well, I think they should have taken the $750 million. Why? Just look at their Alexa stats for past three months. They are stagnating like my New Year's resolution to lose 50 pounds. Over past three months, the daily page views and the daily reach are range bound, and the daily traffic trends are not encouraging as well."
--Om Malik's Blog
"Facebook has some big challenges. Right now it's cool, but it's targeted at college students, where things tend to be cool for 3 years max. What happens when a generation that has had other means to stay connected (ie MySpace) and haven't had Facebook get to school?...It's a great product and the market it reaches is viewed as a goldmine, but come on, $2 BILLION!?"
"Viacom, has looked at (Facebook) multiple times, parsed the valuation and options, and still could not think of a logical business reason for ponying up that kind of money.
What I do know, from my sources, is that Facebook closed on a 'huge round' of funding last week. So I would say the acquisition part is off the table, for now. BW's $2 billion figure is at best, hearsay, and at worst, media manipulation.