Facebook: Google’s Next Acquisition?
Amit Chowdhry | Wednesday October 11, 2006 | 533 views
There are rumors circulating around the Internet that Google Inc (NASDAQ: GOOG) is on the path of making a bid for Facebook at a price of $2.3 billion which would outbid rivals Yahoo! Inc and Microsoft Corporation. The rumor began on Threadwatch.
With the Google/YouTube acquisition, Yahoo! Inc (NASDAQ: YHOO) shareholders are pressuring Yahoo! to take some action, so this development could turn into a bidding war. If Google were to acquire Facebook, they would own the fastest growing social network website and the fastest growing video website. Google’s own developed social network, Orkut had flopped compared to various other social networks, so adding Facebook to their collection would be a worthy investment.
Now since YouTube is owned by Google and thousands of YouTube videos are on MySpace thus bringing in even more traffic to YouTube, Google benefits from MySpace users’ traffic. Google would dominate the social network scene, so we may see Yahoo! and Microsoft Corporation (NASDAQ: MSFT) open up their wallets to Facebook founder, Mark Zuckerberg.
Keep in mind that Microsoft already has their fingers in Facebook’s pie until 2009 as an exclusive advertiser. Bill Gates and Zuckerberg have something in common, they’re both Harvard dropouts that wanted to make money in technology. Gates may see Zuckerberg as a younger version of himself just like how Google’s CEO, Eric Schmidt saw the YouTube founders as a younger version of Google founders, Larry Page and Sergey Brin.
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Categorized under Facebook, Google, Microsoft Corporation, Yahoo!
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