Facebook turns down $750M acquisition offer

[buckslayer80]

If that offer was for real and they turned it down???? I mean with that much money preperly invested in zero risk investments such as CDs....you and probably 5 future generations of your family would never have to work. If a young kid turned down that much cash he must have some future world domination plans or something and need a bigger bankroll [img]/images/graemlins/shocked.gif[/img]

[Bartman387]

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I think anyone would take the money. Why risk it? For me atleast, 700 million is basically the same as 2 billion.

That is like what 35 million/year in a money market account?

Jesus!

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Yeah, but if they feel they could legitimately get more within due time it would make sense to turn down this offer.

I understand the argument that this is an ungodly amount, so whats the difference. but if you, and probably others, feel the property you are selling is worth more it would make sense to get them to make you that better offer.

[manpower]

He's not an absolute retard for passing on the money. Unlike the tech boom in the late 90s, the market isn't irrationally overvalued, and there's little chance that some unforseen event will destroy the value of the company. Facebook, despite it's seemingly groundless roots, may not end up selling for $2b. In fact, it may not even end up selling for 700 million, but it will sell for 500 million, or 400, or 1.5 billion if the gamble pays off. The point I'm saying here is the company has legitimate value and our hero isn't facing an all or nothing decision.

[pokergrader]

You do realize that Facebook makes a lot of money from all their advertising and sponsored crap.

They aren't losing money by waiting for a better offer.

[snagglepuss]

DEAL OR NO DEAL?!




DEEEEEEEEEEEEEEAAAAAAAL!!!!

[Dominic]

what exactly is facebook, and how do they generate revenue to make it worth a billion dollars??

[Tron]

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what exactly is facebook, and how do they generate revenue to make it worth a billion dollars??

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It is a networking site for college students, where they can post their picture, some biographical information, join groups, communicate with each other, etc.

It is estimated that 85% of the students at schools where facebook is available are members, and of that 85%, approximately 60% log in on a daily basis.

Here is the tremendously large lists of colleges that are supported.

They make money in two ways. The first is that users can post bulletins, which cost $5 for 10,000 views. The second is that corporate sponsors have banner ads and some sponsored groups.

Facebook is worth a billion dollars because it is more or less ingrained in current college life. "facebook" has become a verb around college campuses much in the sameway that Google or Xerox have.

[Yeti]

Someeone post the 'thanks for the $$$, emo suckers' picture of Tom. It never fails to make me laugh.

[goofyballer]

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wacki,

sixdegrees.com was around long before any of this stuff. Friendster had millions of users before MySpace/Facebook/etc existed. Friendster is stumbling along while MySpace sold for $580M and continues to grow and Facebook is looking at billion-dollarish offers. It's not about innovation, it's about execution and timing.

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El D,

Why do you think that is? What was special about the execution and timing of facebook and myspace as opposed to the others?

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I think if anyone here could definitively answer that they wouldn't be playing much poker anymore.

[DCopper04]