Facebook turns down $750M acquisition offer

[WiSeIVIaN]

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Interesting stuff recently.

MySpace only made $10M on $550M revenue. Does that kind of low profitability for social sites hurt facebook?

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question, because i'm clueless on how websites work. is there a pie chart or something that explains how myspace spent $540 million dollars? is it all bandwith? it's not like they take out superbowl ads or anything.

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If they took out superbowl ads they would become non-profit...

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FYI, if you check out Newsweek, the cover article is the Facebook Effect. I haven't read it yet but I will look for pertinent updates.

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newsweek

[Platonic]

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Unless facebook radically changes its offered content, there is no way it will get another offer as high as 750 million. Social networking hubs are fickle and go from boom to bust in a matter of years, especially considering that facebook does not offer real blogging or digital media content. Tons of people have one merely for the sake of having one, and then abandon it after a couple of months because frankly, facebook only goes so far and gets boring.

The social interaction is nowhere on the level of Myspace, not to mention that Myspace has the potential to directly sell media content to it's user base, which Facebook isn't even close to doing. Turning down this offer is stupid because Facebook has gotten as large as it can be. Students sign up, abandon it, then new students sign up. Thier base is the current crop of students recycling itself, with no real growth despite constant signups.

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This has been my experience with facebook. I will go on occasionally to send a message to someone that I have on facebook and not myspace.

I think a major factor for this offer is in fact timing, you guys have to remember who in fact purchased myspace and what they have done with it. An example of a major myspace change is that every time you log in, there is an advertisement to look at before you go to your account. Someone seems to think myspace went for less than its worth and they figured they would buy up facebook which is the only similarly scaled competition.

Also, lets say I have a very simple but very good idea for myspace to implement on their website, which they will definately profit from. If someone has an idea of how I can possibly deliver this idea to the right person and make some money on it please let me know. For the record I doubt they will turn this idea down and if they think of it themselves they will do it, and also I won't be telling you what it is.

Platonic