Yahoo in acquisition talks with Facebook

It is reported that Yahoo is in talk to buy social networking site Facebook for $1 billion. Facebook also had discussions with Microsoft and Viacom according to Wall Street Journal. Yahoo stock had dropped sharply(see chat below) last week after weaker earnings.


On the other hand Facebook traffic has been pretty stagnant for the past 6 months, which makes this sale look like not the best of the deals for Yahoo. Below are stats from Alexa for Facebook’s daily reach


Yahoo might be better of trying to get its hand on Youtube which has been experiencing enormous growth recently.


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3 Responses to “Yahoo in acquisition talks with Facebook”

  1. Startup Squad » Blog Archive » Yahoo now wants AOL Says:

    […] Yahoo after its dismal performance in the last quarter is looking to buy AOL. According to a news report from Fortune, Yahoo had recently approached Time Warner about buying America Online. Yahoo had previously tried this deal about a year ago, but the talks had broken down midway. Previously there were reports that Yahoo has been looking to buy Facebook, however even that deal never materialized. […]

  2. StartupSquad » Blog Archive » Google wants DoubleClick too Says:

    […] Yahoo and Time Warner are couple of others looking into the deal, but the high price tag might be a big factor for each of them. This holds true especially true for Yahoo that has been making all kinds of small deals for a long time now including the $45 million investment in RightMedia for 20% stake last year, while talking with Facebook for possible a $1 billion+ acquisition for ever. On the other hand AOL is one of the biggest customer for DoubleClick that makes it an interested party. […]

  3. StartupSquad » Blog Archive » Antitrust to finally come knocking at Mountain View? Says:

    […] The precise market share of advertising is going to get clear sometime this month when two of the biggest online advertising players – Yahoo and Google – announce their financial results for the last quarter. Going through news reports for past couple of months, Yahoo’s market ad market share is expected to increase. That is why their indecision to join the banditos. This leaves out Microsoft and TimeWarner. Personally I expect Microsoft’s AdCenter to limp just like it’s Live Search. But as always Microsoft thinks they will beat Google in the Advertising game too. If Microsoft was/is really serious about delivering on that, it should have very well paid the big bucks and easily beaten Google in the bidding game. As we know the deal never happened. In some ways the outcome is very similar to Yahoo’s plan to acquire Facebook. Another planned big deal that never happened and most likely will never happen. All half hearted attempts that show lack of decision making capabilities at the top of both the companies – Microsoft and Yahoo. As for TimeWarner, their subsidiary AOL is using white labeled version of Google Adwords for it’s advertising marketplace. Ah! Does the total lack of competitiveness of either of these companies has to blamed on Google? But in an antitrust related move, these questions don’t matter that much. If Microsoft and related parties can prove that Google and DoubleClick’s planned deal can hurt the advertising industry, FTC and Justice Department will make sure the deal never happens. Will see what actually happens. More on this as the story evolves. Tags:Advertising Google […]

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