Is Facebook feeling Threat from Twitter?

Facebook started a new concept of copying other websites to enhance its features. The users  can  now post their “Status Updates” just like Twitter allowing them to  tell their friends what they are doing at any point of time. So Facebook has copied or imbibed a feature similar to Twitter with a minor change enabling the posting and reading with status updates via SMS. It’s a move that kills off any possibility of a link up between the two. Google and Yahoo are most likely to be interested in buying Twitter these days. Yahoo would most likely buy it because it’s cool and then recently it failed to acquire Facebook. That said, Yahoo is currently ahead of Google when it comes to interest in expanding to big social media networks.

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Google and Yahoo willing to acquire Rediff

Google and Yahoo are trying to acquire Rediff.com India Ltd, which runs one of India’s most popular consumer Internet portals. Rediff is one of the India based Nasdaq-listed company and they are in talks with the global companies for a negotiated takeover deal.

It has to be noted that India is now emerging as a strong global economy with a growth in both telephone penetration and Internet in urban areas. Rediff.com is an online provider of news, email communication, entertainment and shopping services.

Rediff’s stock took a sharp jump in share price and volume on Nasdaq during the last week. On July 12, Rediff shares  closed at $26.46 and more than 3.3 million shares traded hands. The company has a current market capitalisation of $738 million. It is speculated that if the deal gets through then the valuation may be close to $1 billion dollars.

Why Zuckerberg Won’t Accept Just $1 Billion from Yahoo

Following the YouTube-Google acquisition, many analysts were predicting that Yahoo would make their move and snap up Facebook. A few weeks later, it seems the deal has gone stone cold, with neither party particularly keen to get a deal signed immediately. Meanwhile, Facebook has rolled out a number of features that have received a mixed response: the decision to open up the site met initial resistance among core users, the news feed raised privacy questions, while another move last week put ads within the feed. Today they’re launching a social bookmarking tool. We’ve yet to see how Facebook’s more conservative users embrace these ongoing feature additions. Personally, I think founder Mark Zuckerberg is happy to continue loading on the features and building out his site: one billion from Yahoo won’t sway him.

Zuckerberg has always been very clear that Facebook will be a successful independent business. Zuckerberg isn’t doing any simple bluff. He is wise to maximize his options, as time is on his side. This mantra, just build the best business, makes internal sense in two ways. First, engineers and product people are singularly focused on building product. The business side is crafting deals to secure a long term viability. A good thing, focus is. Second, it suppresses internal expectations of immediate gratification.

The mantra is obviously valuable externally, since Facebook needs only one buyer, whenever. Several companies with a market cap in the 10s of billions have been repeatedly in negotiations. Designed from the start to be cash flow positive, Facebook is free from the time pressure, lacking the bandwidth bill urgency that YouTube must have felt. Calculating VC investments + revenue – obvious costs, YouTube had a horizon of several months before needing recapitalization. Facebook’s horizon is.. infinite. Wouldn’t you believe they will be back?

Zuckerberg is having fun. It is a dream position for him, and also for just about everyone in the building with him. It’s only 9pm and the DJs are just setting up.

Courtesy: Mashable.com

Yahoo’s bid to buy Facebook

According to the Wall Street Journal, Yahoo has offered Facebook an amount that could be approximately $1 billion in a bid to purchase it. Facebook is second largest social networking website in the US. Yahoo has been talking to Facebook over the past year.  Facebook also had discussions with Microsoft and Viacom. Earlier as well there were rumors of its acquisition wherein Facebook reportedly turned down an offer of $750 million, deciding to hold out for $2 billion.

Currently Yahoo has social media websites (Flickr, del.icio.us & Yahoo Answers) however they do not have anything like Myspace; the largest social media website or Facebook. Lets wait and watch that weather we’ll see Facebook as a Yahoo company or not.

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