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.
Tag:
Add to 
Bookmark murdok:
Nav is the founder and CEO of Page Traffic, a premier search engine company
known for its assured SEO service, web design and development, copywriting and full time SEO professionals.
Navneet has wide experience in natural search engine optimization, internet
marketing and PPC campaigns. He is a prolific writer and his articles can be
found in the “Best Articles” section of many websites and article banks. As
a search engine analyst , he has over 9 years of experience and his
knowledge is in application here.
