FRIENDSTER FOLLIES... VIACOM TAKES A PASS
HatTip to PaidContent.org's Staci Kramer. She has a great update on Friendster's attempts to exit and for its investors to salvage a few bucks. Some juicy bits:
That offer was at or about $20 million -- already a deep discount from the $50-100 million being tossed about late last year, which was already a deep discount from the $200 million ballpark that cropped up in early 2005.
Soon after due diligence began, though, Viacom decided than the company sounded better than it actually looked and decided to pass. I have been told by multiple sources that later Viacom was offered the chance to acquire Friendster for $5 million -- less than the $11 million to $15 million we estimated last year so far had been invested in the company. The word Viacom got was that Friendster's VCs no longer wanted to fund the company. (full post)
Who else would buy Friendster and try to turn it around? Can't really think of one. Maybe it will be foreign firm will pick up the scraps for an entry point into the U.S. market?
UPDATE: Om has more, "Friendster, Still Looking 4 A Hook-Up"