Home > Main > CMS > Yahoo Reportedly Tries To Woo Facebook Social Networking Website
Facebook is a social networking website that allows people to share information online by creating profiles to connect with friends, share interests, join groups, send messages, write notes and post photos. Facebook is considering selling itself to Yahoo for what could approach $1 billion, the Wall Street Journal said, quoting people familiar with the talks.

Facebook has also had discussions with Microsoft and Viacom, but those talks failed to advance. Yahoo is reportedly in serious talks to acquire Facebook, a move that would give the portal a needed boost in the fast-growing market for online social networks.

Facebook in May was the third largest social network on the Web, with No. 1 MySpace and No. 2 Classmates.com, according to ComScore Networks. Such sites have become advertising magnets because of their coveted audience of teenagers and young adults.

Last month, Facebook signed a deal giving Microsoft exclusive rights to sell and display banner ads and sponsored links on the site. Although financial details were not disclosed, the Journal quoted sources saying Microsoft promised to deliver $200 million worth of ads over three years.

The Facebook-Microsoft deal followed by two weeks Google's agreement to pay News Corp. $900 million over three years to provide search and distribute advertising on MySpace.

David Card, analyst for JupiterResearch, said Yahoo would be a good home for Facebook, because of the entertainment portal's solid infrastructure for delivering targeted advertising to groups of consumers. In addition, Yahoo would offer entertainment advertising and promotions, and the ability to integrate its instant messaging and email services, which are some of the world's largest networks.

"Yahoo 360 doesn't seem to be going anywhere for older teens and young adults," Card said in his blog.

According to ComScore Networks, 34 percent of Facebook's 14.8 million unique visitors in August were 18 to 24 year olds. That compared with 11.4 percent for Yahoo, which had 131.3 million visitors that month.

For Yahoo, Facebook, which has more than 9 million unique visitors, would bring a ready-built social network that the portal hasn't had much success in building on its own.

Microsoft's talks with Facebook broke down, because the site had wanted $2 billion, according to the Journal. Nevertheless, Microsoft would benefit from such an acquisition in ways similar to Yahoo, Card said. "One could say all the same things about Microsoft."

The phenomenal growth of startup social networks has been a key attraction to investors and the largest Internet and entertainment companies. In April, the top 10 social-networking sites attracted 45 percent of all Web users, Nielsen/NetRatings said.

Nevertheless, long-term growth, and a return on investment, is not guaranteed, given the fickleness and passion of the audience. Facebook, for example, sparked a rebellion among hundreds of millions of registered users after it instituted new features that they considered an invasion of privacy. To quell the uprising, Facebook founder Mark Zuckerberg apologized, and the site gave users the ability to opt out of having their activities automatically broadcast to other members.

Social networks that rise quickly, can also fall just as fast. Friendster, an early leader in the market, is one that fell from grace almost overnight to competitors, such as MySpace, the largest social network on the Web with more than 66 million unique visitors, according to ComScore Networks.

 

Survey Awards

(0 votes, average 0 out of 5)

Survey Comments

Social Media Tags
  • Optimize Your Optimization: Getting the Most from SEO on Your Website

    ... top five items appearing on the search engine results page. That's a sobering thought. You can be the best at what you do, and the best at saying why, but it doesn't count if you're invisible. An ...
  • Amazon SEO: What businesses need to know to get their products found

    My response? It's all about Amazon SEO (search engine optimization). Just like Google, Amazon has an algorithm or logic for which products it decides to show in its product search results. Unlike Goog...
  • Which Is Better For Your Business: SEO or PPC?

    SEO is short for search engine optimization and can be adopted by businesses in all industries. It is suggested that organic results are 8.5x more likely than PPC ads to be clicked in a search engine, ...
Email:

Subscribe our FREE Insider's Newsletter. Your email is 100% secure with us.
Join Us On Facebook Follow Us On Twitter Social Media Tags     RSS Feed



Forgot Password? Username?
Create an account
We have 483 guests online