Thursday, March 30, 2006
Google Lining Up to Buy TheFaceBookIt's not just the Sun and the Moon that are lining up today. Everything seems to be falling into place for a Google acquisition of TheFaceBook and here is why.
Just the other day TheFaceBook got blogosphere's attention by pulling a Google like move and turned down an offer of $750 million and said they were holding out for $2 billion. It wasn't too long ago that Sergey and Larry turned down an offer from Lycos to buy the upstarting Google, that seemed to turn out ok for them.
Now there are reports that Google is selling off some 5.3 million shares. If you do the math, Google's stock price is around $395 per share x 5.3m, that equals roughly $2.1 billion. Just enough for the Google boys to buy TheFaceBook at their asking price and still have some left over for a pizza party. Or even a muisc party.
In my opinion, this would be an odd move for Google, who already owns and operates Orkut, not only do they already seem to have a pretty good foot into the college market with its Gmail, Blogger, and their association with FireFox, but as John recently pointed out the college student demographic is highly overvalued.
Not only does this demographic have very little disposable income but TheFaceBook's audience turns over every 4 years and probably moves onto MySpace where there is no restriction to '.edu' only email addresses.
Of course this is all speculation, but when it walks like a duck and talks like a duck...It's TheGoogleBook
By Jason Dowdell at 09:45 AM | Comments (1)