Facebook Plays Acquisition Brinkmanship

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Facebook Plays Acquisition Brinkmanship

By: Andy Beal
2006-11-02

Facebook founder and CEO Mark Zuckerberg is playing a dangerous game of brinkmanship with potential suitors.

Instead of cashing-out for $800 million, the young entrepreneur is holding out for $2 billion.

In the meantime, Business Week reports the site is starting to lose popularity and with the decline in growth, might come a decline in purchase price. Potential buyers such as Viacom and Yahoo, are content to sit back and wait, hoping to get a cheaper price tag.

Now, however, with traffic that may be declining alongside the always-elusive cool factor among fickle collegians, potential buyers are more inclined to wait in the hope that Facebooks price may drop. For his part, Zuckerberg appears to be in no rush to make a quick exit to the bank. Were focused on building the business, says marketing director Melanie Deitch. Were doing extremely well and were having fun.

So, what do you think Facebook should do?

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View All Articles by Andy Beal

About the Author:
Andy Beal is an internet marketing consultant and considered one of the world's most respected and interactive search engine marketing experts. Andy has worked with many Fortune 1000 companies such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian.

You can read his internet marketing blog at Marketing Pilgrim and reach him at [email protected].


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