Posted November 1, 2006 9:42 am by with 5 comments

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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?

  • Dean

    Have we learned nothing from the Dot Com era??? Take the money! Then again $2B would set him up for life and you can’t live off $800M these days 😛

  • You’re right, I don’t even get out of bed for less than $10m these days….right.

  • Anthony

    I’ve heard through the Harvard grapevine that Mark and family only own about 30% of the company these days. It’s the private equity and venture capitalists who own the rest that are really the ones pushing the company to hold out.

  • 30% is still a lot of money . He would be worth at least $200 Million Dollars . He should take the money and if he thinks he is so smart he should try to start another company

  • Right now I’m saying that that is pure greed which usually returns in a major downfall, however, if he does get 2 billion then I would be eating those words!