Google Waiting For Facebook To Approach
By: Andy Beal
Thanks to Jordan's excellent coverage, Marketing Pilgrim has become the unofficial Facebook rumor blog and today we have more to share.
Despite some suggesting Google should go ahead and acquire Facebook, it appears Sergey Brin is not in a mad rush to snap them up.
"If they come to us, we'd certainly be open to talking," Brin said, answering a reporter's question at the 25th annual Allen & Co. media deal-makers conference in Sun Valley, Idaho. "But I think they're building a great company of their own."
Hmm. We could fill a couple of posts with analysis of what Brin's statement actually means. My guess is that Google knows that if they make the approach, they'll likely have to pay a premium for Facebook - especially as Facebook founder Mark Zuckerberg seems happy to throw wild valuations at any potential suitor.
Instead, Google will likely sit back and wait to see if Facebook can continue its blistering growth. If it can, then likely it might price itself too high for Google - who's already shelling out $5+ billion in acquisitions. If it starts to falter, Facebook might realize it needs help and approach Google. Facebook approaching Google would put Schmidt, Bring and Page in a stronger position to negotiate.
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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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