Facebook Plays Acquisition Brinkmanship
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 Facebook’s price may drop. For his part, Zuckerberg appears to be in no rush to make a quick exit to the bank. “We’re focused on building the business,” says marketing director Melanie Deitch. “We’re doing extremely well and we’re having fun.”
So, what do you think Facebook should do?