You all recall how for the past year there have been much talk regarding Yahoo! Inc. (NASDAQ:YHOO) possibly acquiring Facebook, for a rumored $1 billion. No different than others, at BloggingStocks we also analyzed the potential deal left, front and center.
Apparently, they've also analyzed the deal over at Yahoo!, calling it "Project Fraternity." I have no idea how Techcrunch came into possession of these leaked documents, but they are posted on the site.
According to the documents:
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Yahoo! offered $37.5 million for 5% of Facebook (a $750 million valuation) back in Q1 2006. This was rejected by Facebook.
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Later, mid year, Yahoo! offered to buy the company flat out for $1 billion. The model created projected revenue of $608 million by 2009, $969 million in 2010 with 48 million users. By 2015, according to Yahoo! projections, Facebook could reach revenues of $1.8 billion. A 58% margins was used to achieve an EBITDA of $353 million, $562 million and 1.06 billion respectively. This offer was also rejected.
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Yahoo! then was going to offer $1.62 billion but negotiations broke off.
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For 2006, Facebook is projected to make $50 million.
Since the documents are a few months old, I'm not sure if they take into account Facebook's recent decline in subscriber growth rate. Regardless, it is interesting to see the internal work of such a potential deal.
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