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Summary:

The Wall Street Journal reports that the talks between Yahoo and Facebook are in slow motion. WSJ says that Facebook’s business is showing a nice jump after addition of new features. They also point out that…. The site had 13.3 million U.S. visitors in September, down […]

The Wall Street Journal reports that the talks between Yahoo and Facebook are in slow motion. WSJ says that Facebook’s business is showing a nice jump after addition of new features. They also point out that….

The site had 13.3 million U.S. visitors in September, down from 14.8 million in August, according to research firm comScore Networks Inc.

Anyway they are right that Yahoo talks are in slow-mo! This is just an update to a story they did back in July. Our sources say that things might have cooled a little in recent days. Of course there is no dearth of suitors for Facebook – Microsoft and even MySpace (just to take out the competition) could make a play for the social networking company based in Palo Alto, Calif. Stay tuned.

In the light of the $1.65 billion YouTube acquisition, looks like valuations might be getting too rich for some of the traditional media companies.

Our recent Facebook coverage is here

  1. FWIW: I hosted a pre-game pasta dinner for my daughter’s soccer team last night. Taking advantage of this ad-hoc focus group (ages 14-18), I heard them rave about Facebook, each asking the other for an “add”. I asked about MySpace, and most said they used to use it, but that it’s “sketchy”. They like the fact that Facebook only let’s people contact you if they’re in your circle of friends.

    Maybe this is why MySpace’s average age is > 35

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  2. can’t see why they’d want to get in bed w/ facebook right now. Yahoo doesn’t seem to be clamoring for the youth demo, add in the fact that they just announced slower ad sales with Facebook’s biz model of Banner Ads as only source of revenue, I can see why they are walking away.

    The quality of their banner ads is junk too.

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  3. Yahoo won’t wildly benefit from a Facebook acquisition, but it would help improve on Yahoo 360. They can’t make acquisitions for their own sake, but they do need to pick up the pace.

    http://breakoutperformance.blogspot.com/2006/10/terry-semel-cause-of-yahoos-success-or.html

    Thanks,

    Eric

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