No Yahoo! For Facebook Yet: Acquisition Docs Leaked

Dec 13, 2006 | 148 views | by Navneet Kaushal
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There have long been rumors of Yahoo! acquiring Facebook. Michael Arrington at Techcrunch , reported the acquisition documents, named "Project Fraternity" have been leaked. "Leaked documents in our possession state that an early offer was $37.5 million for 5% of the company (a $750 million valuation) back in Q1 2006. This was rejected by Facebook.

Things really heated up mid year. Yahoo proposed a $1 billion flat out acquisition price based on a model they created where they projected $608 million in Facebook revenue by 2009, growing to $969 million in 2010. By 2015 Yahoo projects that Facebook would generate nearly $1 billion in annual profit. The actual 2006 number appears to be around $50 million in revenue, or nearly $1 million per week.

Our sources say that Facebook flatly rejected the $1 billion offer, looking for far more. Yahoo was prepared to pay up to $1.62 billion, but negotiations broke off before the offer could be made.

4.thumbnail No Yahoo! For Facebook Yet: Acquisition Docs Leaked

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
4.thumbnail No Yahoo! For Facebook Yet: Acquisition Docs Leaked
4.thumbnail No Yahoo! For Facebook Yet: Acquisition Docs Leaked