Another social networking site for grown-ups could see a possible buy out.  CNet News reports that they will have a follow up post after Thanksgiving.

Web 2.0 has seen some exciting news of mergers and acquisitions.  The difference between the first internet craze in the 90’s is that these companies that are emerging today have a huge audience base.  This base brings mounds real traffic and data.   These mounds have make a huge barrier to entry to reach a buyout opportunity.

Buyout

How does one determine what is the right price.  Friendster lost a huge opportunity for a buyout because they got too greedy.  They held out, thinking that their company was worth more than the offer.  The systems overloaded with the demand, and people eventually fled to MySpace.   Holding off on a buyout maybe be beneficial, however if you have a rising competitor that can take your share of the market place, a buyout might be the safe way to go.

Chance of a Lifetime

In business there are 2 things outcomes of a company’s life.   The first being that the business will fail for whatever reason.  The second is that the company will eventually get bought out.  Yes there are companies that will last longer than one’s life, however there will be a time that the company will be bought out to another merging competitor.  Greed has no 2nd chances.

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