Yahoo in acquisition talks with Facebook

By Vivek Puri | September 21st, 2006 at 08:46 am ET         

It is reported that Yahoo is in talk to buy social networking site Facebook for $1 billion. Facebook also had discussions with Microsoft and Viacom according to Wall Street Journal. Yahoo stock had dropped sharply(see chat below) last week after weaker earnings.

On the other hand Facebook traffic has been pretty stagnant for the past 6 months, which makes this sale look like not the best of the deals for Yahoo. Below are stats from Alexa for Facebook’s daily reach

Yahoo might be better of trying to get its hand on Youtube which has been experiencing enormous growth recently.

Tags: StartupSquad, Facebook, Yahoo, Web2.0, Web_2.0, SocialNetworking