Seeking Alpha Article - Why Google Should Acquire Facebook
Looks like I'm not the only one who thinks it may happen. Logically, Google could justify it by the Tumblr acquisition of rival Yahoo. IPO investors who want out would take the deal... GOOGLE investors would get a bargain at about $40 per share. A win/win for everyone!
At $40/share GOOG would have to spend about $96 BILLION to aquire FB. FB is too expensive at these levels. Tumblr cost YHOO $1 billion so you can see the challenge that FB has. They are too big to be bought, and too inexperienced to grow like a bleeding edge tech company should. Hence why their stock price is retreating to a more reasonable valuation. Good luck.
The deal could make sense and appear to be fantastic but the killer of the deal would be the big Zuck. He may own less than a quarter of the stock but he has over 80% of the vote. Under no circumstances would he sell to Google which is his enemy. This is Marks ship and he will sail it where he wants and I don't think its clear where he wants to go but it is clear that he wants to remain captain.