Google? Facebook? Acquisition?
July 13th, 2007 | Categories: acquisitions, financing, marketing, markets, networks, social media, strategy
Once again, rumours are swirling about a potential Facebook acquisition. This time, Google is the culprit. Sergey Brin, co-founder of Google, has expressed interest in the exploding social network. This isn’t the first Facebook takeover rumour we’ve heard so far this week. Already, reports surfaced that Microsoft has been in talks with Facebook. In addition, acquisition talks between Yahoo and Facebook have been going on for what seems like forever. The future of Facebook is uncertain to say the least.
What would a Google takeover mean for the search giant? Access to a large, highly sought-after market and ownership of a respectable social network (finally). Orkut just didn’t cut it. What would a deal mean for Facebook? Lots of money for Zuckerberg and more targeted advertising.
Let’s be honest though. This is an information deal - it’s all about the data. Facebook is a marketer’s dream. The amount of information available is ridiculous. Regional, demographic, social - Facebook has it all. Google would simply be adding another database of information to their arsenal. It’s all part of their master plan to take over the world. Muhuhaha…
Other rumours are circulating that indicate Google is laying back and waiting for Facebook to come to them. Still, others are saying that Zuckerberg and co. are sticking with their initial plan of staying indepedent, shunning all takeover offers, and planning to go public later this year.
Perhaps this is simply another Google PR stunt to raise awareness about the company. We haven’t heard much from the company in the last week or so. Ha. Having said that, they fooled me when they bought YouTube. It seems that the search giant is always looking to buy the cream of the crop in any given space, not only to acquire a large user base, but also to generate excessive amounts of PR and buzz.
Money always seems to be the big issue when it comes to Facebook acquisition talks. Because the social network is growing at such a phenomenal rate, it always seems to have the upper hand in takeover talks. What this means is that it can call the shots - i.e. the only way Facebook will sell out is if they are offered a huge sum of money. As mentioned, Zuckerberg has indicated an unwillingness to sell. But we live in a capitalist society. If the price is right, it is pretty hard to say no. Don’t forget that Google has deep pockets and a track record of getting what they want. Will Google be the one to finally pull the trigger? Can we say hello to GooBook?