A few market observers seem to think Facebook’s Mark Zuckerberg and his growing executive coterie have their hearts set on an IPO rather than an exit by acquisition. Maybe that’s true, but I think Zuckerberg and company would not look a gift horse in the mouth, especially if Microsoft came calling with a takeover offer of $10 billion or more.
Why? Well, look not further than this paragraph from a post today at the Silicon Alley Insider:
For the record, we think a Microsoft (MSFT) deal wouldn’t be a terrible idea. But we really don’t think that Zuck has any interest in selling out, yet. He seems gung ho on an IPO, and is beefing up his management team in advance of one. Still has to work on a business model, though.
Still has to work on a business model, eh? I’d say that’s a major omission, one that we shouldn’t be cavalierly disregarding after the bubble carnage of earlier this decade. Have some of us forgotten the inherent investment risks associated with having Internet-based enterprises that lack solid business fundamentals? It would seem so.
You can bet that Zuckerberg and his advisers would think twice before turning down Microsoft’s filthy lucre.