Is it just me, or does the latest WSJ piece on Yahoo-Facebook negotiations sound like it was dictated by Facebook in an effort to whip Yahoo up about the deal? A nice ‘leak’, if you can get it. My favourite bit of analysis dictation:
The two companies have had discussions since, with Yahoo’s valuation for Facebook again in the range of $1 billion, say people familiar with the matter. Facebook isn’t considering any rival offers at the moment, says one of the people, but “there’s not a tremendous desire on either side” to get a deal done.
Facebook’s business picked up over the past month after the introduction of some new features on its site, making the company more confident about its prospects, say some of the people familiar with the matter. Google’s deal for YouTube also indicates a robust mergers-and-acquisition climate for Internet companies that could broaden Facebook’s options, these people say.
These factors reduce the incentives for Facebook’s management, which includes founder and Chief Executive Officer Mark Zuckerberg, 22 years old, to sell the company now. In an interview last month, Mr. Zuckerberg said there was no sense in saying, “let’s make a lot of money now….I can be doing this for a long time, hopefully.”
I’m inclined to agree with Michael Parekh: “Observers of the internet industry are quick to point out “bubble valuations” and “bubble era” when large transactions occur. What’s often not as well understood is how the mainstream media plays an integral role in their manufacture.”