Yahoo's Talks With Facebook Get Bogged Down [Wall Street Journal]
Summary: Yahoo!, Inc., already faced with a host of problems including slowing Internet ad sales growth and a delayed ad systems upgrade release, is struggling in its attempt to acquire social networking site Facebook Inc. Its difficulty in closing the deal highlights the growing divide between the Internet giant and rival Google, which just announced its swift purchase of video site YouTube for $1.64 billion. An acquisition of Facebook, which is geared toward college students, would ostensibly help Yahoo target a younger demographic and thus lure advertisers. Yahoo is valuing Facebook at approximately $1 billion. The two companies flirted with a deal in July, but Facebook – likely encouraged by the strong mergers-and-acquisition climate suggested by the Google-YouTube deal – appears content to await rival suitors.
Related links: Yahoo: Left in Google's Dust? • Is $1 Billion a Fair Price For Facebook? • Yahoo Gets GooTubed: Stock Down On Ad Competition • WSJ: Yahoo in Talks to Acquire Facebook • Why the Facebook/Yahoo Deal Won't Happen So Soon • How a Facebook Acquisition Would Benefit Yahoo • Yahoo! Inc. Q2 2006 Earnings Conference Call Transcript
Potentially impacted stocks and ETFs: Yahoo! Inc. (YHOO), Google (GOOG)
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