Who Will Buy Facebook? (and why TC thinks Google is a possibility)
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Re: Who Will Buy Facebook? (and why TC thinks Google is a possibility)
#2I don't think an IPO is too big of a stretch for the Facebook people.
Re: Who Will Buy Facebook? (and why TC thinks Google is a possibility)
#3Do all the mega-buyouts lately mean good things for new startups, or does it mean that all the potential acquirers have already spent too much money?
Re: Who Will Buy Facebook? (and why TC thinks Google is a possibility)
#4They will IPO. TC and their false speculations are really getting old.
Re: Who Will Buy Facebook? (and why TC thinks Google is a possibility)
#5They will IPO. TC and their false speculations are really getting old.
What if facebook got their full $6 billion price? It'd be one big buy for Google but it's not like Google is going broke.
Re: Who Will Buy Facebook? (and why TC thinks Google is a possibility)
#6Re: Who Will Buy Facebook? (and why TC thinks Google is a possibility)
#7I think facebook are in it for the long haul, might even do an ipo and be almost google sized themselves
Re: Who Will Buy Facebook? (and why TC thinks Google is a possibility)
#8They will IPO. TC and their false speculations are really getting old.
What if facebook got their full $6 billion price? It'd be one big buy for Google but it's not like Google is going broke.
I don't think Google can afford a $6 billion buyout. They're on track to make maybe $16 billion this year. Microsoft is probably the only software company with a decent interest in the web and the pocketbook to pay for a highly valued site. And the aQuantive buy is the biggest they've ever done (and probably will ever do).
Re: Who Will Buy Facebook? (and why TC thinks Google is a possibility)
#9I think facebook are in it for the long haul, might even do an ipo and be almost google sized themselves
They'll probably IPO, but there's no way they'll be Google-sized. Google is basically a money printing machine because the dominated the most monetizable activity on the internet: searching. People are looking for things to click on when they search, so if an ad comes up with something that's similar to what they're looking for, the click on it. On Facebook, people are looking for information about other people and generally zone out the ads, which is why they get such low clickthrough rates, as was reported a while back. That puts it on the opposite end of the spectrum from Google. In between are media sites, which are generally passive, but more conducive to clicking on ads than an active site where what you're looking to do is completely different from the ads.
They will be/are profitable and will probably IPO, but I don't think it'll be huge. The numbers don't justify it.
Unless they have something crazy up their sleeves, which is a definite possibility.
Re: Who Will Buy Facebook? (and why TC thinks Google is a possibility)
#10Earlier quoted context omitted.
What if facebook got their full $6 billion price? It'd be one big buy for Google but it's not like Google is going broke.
I don't think Google can afford a $6 billion buyout. They're on track to make maybe $16 billion this year. Microsoft is probably the only software company with a decent interest in the web and the pocketbook to pay for a highly valued site. And the aQuantive buy is the biggest they've ever done (and probably will ever do).
This is (sort of) a misunderstanding of how most buyouts work. Google, were they to "acquire" facebook for $6B would almost certainly structure it as a stock-swap merger. This way the acquisition isn't a taxable event, and they can use stock instead of cash.
At GOOG's current market cap, $6B of dilution would be pretty minimal.
Not mention the $10B of cash equivalents (and growing, fast) on their balance sheet to buyback stock or even do a full cash deal if they were feeling crazy.