Facebook Rumor: Microsoft trying to buy for $6 Billion - Facebook should ignore
July 13th, 2007 | by danny |Henry Blodget and Inside Microsoft debate whether Microsoft should offer $6 Billion for Facebook, and whether Facebook should accept.
Should Microsoft be willing to offer $6 Billion? Yes.
Should Facebook accept? Nope.
The company has hit escape velocity right now. How many companies do you know of that hit this and then subsequently fell flat? Not many. Actually I can name the one company because I used to work for its parent. Good old AOL. But there was a legal impediment there, and that’s a post for another time.
I personally don’t think Facebook should sell at all. It’s on the path to becoming the next Yahoo! and this acquisition would likely divert it. Beyond that, if Facebook were to entertain an acquisition by Microsoft, they could likely get $8-$9 Billion. Why? Because Facebook is worth an irrational amount to MSFT, and $10 Billion is just too many digits to ask for, so you gotta go less than that.
It’s not about the numbers. Some analysts are probably crunching numbers on both sides of the table, but the numbers will be ignored until they tell the right story.
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