Yahoo in Talks to Acquire Facebook?

By Geoff Duncan Published July 25, 2014

The Wall Street Journal is reporting (subscription required) that online, campus-focused social networking site Facebook is seriously discussion selling itself to Internet portal Yahoo for a sum which could approach $1 billion.

Although the social networking market is currently dominated by Fox’s MySpace, Facebook is considered one of the strongest alternatives to Rupert Murdoch’s online teen hangout, centering its attention on college students. Facebook’s visibility has increased significantly in the last two years following the implosion of social networking site Friendster.

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Acquisition rumors have been bubbling for months regarding Facebook, with Viacom and Microsoft named as likely suitors. In early 2006, BusinessWeek reported that Facebook turned down a $750 million offer, holding out for the possibility of more money.

If Yahoo (or another entity) were to pay up to $1 billion for Facebook, it would make the $580 million Rupert Murdoch’s News Corp. paid for MySpace in 2005 look like a very shrewd deal…and make NBC Universal’s $600 million acquisition of iVillage seem a little odd.

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Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…

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