6/6/07

FaceBook To Yahoo!, Rumors Round 2

Mashable is first out of the gate with talk of the second round of rumors that Yahoo! is talking to Facebook.com about a buyout. Rumor has it he turned down 1 billion from Yahoo! earlier in the spring but if Yahoo! ponies up 2 bil. will Zuckerberg give in?

Would Rupert Murdoch sell MySpace for 2 billion today? Not a chance. As Facebook builds out their "Marketplace" by adding contextual sponsored ads and giving national and local advertisers access to individual profiles and networks earnings will soar quickly.

Their approach to delivering ads has been measured. So far there are no user revolts or e-riots caused by the system wide display ads supplied by Microsoft and there won't be when the sponsored ads show up.
My guess is once members see how relevant the local targeted ads are the ads will be viewed as more a service than advertisement. Facebook won't make the mistake MySpace made allowing Google to broadly deliver AdWords. I have never been served a relevant contextual ad on a MySpace page amazing as it seems. Facebook will be all about relevancy and if they deliver the right ads to the right demo their earnings metric will shake convention.

This subject is important to me because I have clients who will want get in front of our local University network base. If my pizza client could buy into select FB networks or profiles their spend goes up as do my revenues!

Zuckerberg will eventually be forced to feed his angels, surely some are pressing for a quick turnaround on their investment now. At some point the SEC will require financial disclosure, (the reason Google's IPO was forced) but that is some time away.

Mark would be smart to wait for the cards he has on the table to play out. If his earnings double from the rumored $150 mil. to $300 mil. and they IPO'ed and netted a GOOG like market cap. it would be near $12,000,000,000. If earnings triple?
Yahoo! knows this.

Mark Zuckerberg is redefining social networking before our eyes and his vision is only now being realized. I'm rooting for him to hold out as long as possible.

4 comments:

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The software must provide you with direct linking capability. This enables you to establish a direct link with all of your affiliates. The software must be able to support multiple sites.

You will require this capability to support all the sites you are working with.

The software does not come freely. You will have to pay some amount to enjoy the benefit of these software. They can be obtained either by paying a monthly rental or an amount of money annually.

The affiliate tracking software tells you where your business is heading. The software provides a high level of system automation that enables you to focus on your creative marketing and other efforts.

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