Facebook $750 Million.. Rejected!

That's a huge offer, although I imagine the market value of the site will increase out 3-5 years from now where Yahoo might look to acquire it.

Harvard Sophmores.... Dangerous people

$2Bil would be a large gamble, and I don't think that the media giants they are hoping to entice to bid have that kind of cash laying around anymore (And yet again, core competencies) for a disposable purchase.

Still, I had no idea facebook was so popular, although I had heard of it before (Usually in the context of myspace.com, however.).

-Allan :gl:

The term "Greed" comes to mind.

I mean, 750 mil, come on, I'd retire off the interest that money made.

Well, you never know, they might get a higher offer soon!

Owners obviously are confident the site will increase in value over time... I'm not sure if I share their same optimism.

I'll take half of what they turned down if the offer still stand! LOL!!!

I would have taken the offer... they must have some pretty high expectations or some big brass ones (or both) to turn down $750 Mill. Greed or forethought? Hmmm....

GoPC

How anyone can comment that they should have taken this money is amazing. Companies are valued on a wide range of factors including, and notlimited to:

- Revenue
- Asset base
- P/E ratios
- Asset turnover
- Market competitors
- Estimate of share price (as the company is private)
- Potential future syngergies

This is not a domain name where they chose the value. The value could realistically be set quite accurately. For them to accept a price below what it is worth would be like you selling your best .com for $20. The new owner would just sell it at the true price and make money at your expense. If you had sold for $2bn and thought you only wanted $750m then you should chose what YOU do with the extra, not them.

(I'm an accountant by the way!)

It's important to note this is the #7 alexa site, and the traffic is growing expontentially. Plus, the target market here is optimal for advertisers.

Greedy fools...

LOL, this Facebook site never came to attention. Just the same kind of attention as myspace as stated before. The amount offered really surprised me and makes you wonder what the structure and possible future possibilities such a site has to create such a bid on their site.

Something to ponder about

It's obviously in a great position with 5.5bn page views while being ranked the 7th most trafficked site on the net, not to mention the fact that networking and other such sites are the current big winners on the internet.
If they think it's worth $2bn why shouldn't they ask that.

I've seen media companies spend many billions more than that on far worse deals.
Most media companies would love to have a project that popular in their portfolios, not to mention it being a huge cash cow even more so after the input of a large media company.

It's not even a direct competitor to most of the media companies which means they'll be able to integrate it easily.
There's way too many companies acquiring a direct rival and then falling flat on their face trying to integrate it into their company. They usually end up with a giant loss-making business and their stock loses billions.

Greedy? Hell no!
Realistic? Yes.

More power to them.
(and I don't doubt they'll get that price - give or take 10%)

I can't believe that it would be more valuable than MySpace, which sold for what, $580m?

May be a publicity stunt.

Site looks like garbage, I'll tell you that.

hmmm... i never knew this site before this thread, wonder how they managed to get such a high offer

If it's #7 on Alexa, there are obviously a LOT of people that do know the site. And that age group (kids) are valuable visitors.

cfguru360 said:

May be a publicity stunt.

Site looks like garbage, I'll tell you that.

Click to expand...

Judge not by the cover -- there is quite a lot going on inside facebook. It mayn not be the most beatiful site ever, but neither is MySpace -- more importantly it has tons of functions, groups and a large majority of college (and even high school and college alumni) students using it on a daily basis.

Insane...just insane!

Facebook is huge guys, I think it's a good move to hold out for more money. Who does and accepts the first offer you get anyway? As long as its grossing a nice um in advertising every month...they can wait for a bigger sale. And it wil come, watch.

For those of us who didn't know anything about facebook, here's the wikipedia entry:

Facebook, formerly known as thefacebook, is a social networking service for high school, college, and university communities, primarily in English-speaking countries. The site has some similarities to MySpace, but differs in account availability, user control of display content, real-world identity, and overall neatness of appearance. As of December 2005, it has the largest number of registered users among college-focused sites (at over six million US college student accounts created with an additional 20,000 new accounts being created daily).

Anyone with access to a valid e-mail address from 2,000+ universities can register for and access the site, a group that includes students, alumni, faculty, and staff, although the vast majority of Facebook’s users are students. Facebook is also available at 25,000+ American high schools. The site is free to users and is financed by advertising. Facebook employs people in Palo Alto, California and in Boston, Massachusetts.

imagine if you have 750 million to buy zillions of domain names n in 10 years time ..how much will that be worth!
hahah..cant imagine

I really hope they know what they're doing, $750M is a big amount.

I definitely never heard of it 'til now.

$750 million...that's a loooooooooot of money to reject...sheesh...

Didn't MySpace sell for $590 Million? If so, I'm surpried they didn't sell Facebook for 750 Million

cfguru360 said:

May be a publicity stunt.

Site looks like garbage, I'll tell you that.

Click to expand...

If that's the case, then what is Myspace?
Facebook loads a lot faster than Myspace and has cleaner code.