A Bad Business Decision Thread: In 2003, Google offered to buy Friendster for $30MM - GoFuckYourself.com

stereolab · 02-07-2006, 07:12 PM

in Pre-IPO stock. Friendster founder Jonathan Abrams rejected it in favor of $13 million in VC funds because the firms valued the company at $53 million. Of course, now, those firms no longer want to fund the company, and Google's stock hit nearly $500 per share.

http://www.findarticles.com/p/articl.../ai_kepm358716

had they taken that offer, they would be worth something like $2.5 Billion

recently they asked Viacom to buy them for $5,000,000. Viacom rejected the offer.

http://www.paidcontent.org/pc/arch/2...1.shtml#053107

damn.

anyone else have bad business decision stories - your own or otherwise?

uno · 02-07-2006, 07:14 PM

hah. I always hated friendster.

stereolab · 02-07-2006, 07:17 PM

Quote:

Originally Posted by uno

hah. I always hated friendster.

allowing bands to promote themselves really let MySpace grow rapidly in that market. now they got bought for $500 Million. friendster didn't allow this. friendster should have been more liberal in their profile polices.

jjjay · 02-07-2006, 07:33 PM

so google launched orkut instead - how come it never took off? (except in brazil)

mrthumbs · 02-07-2006, 07:38 PM

Quote:

Originally Posted by jjjay

so google launched orkut instead - how come it never took off? (except in brazil)

I belive the biggest reason for that no taking off is the name

DamageX · 02-07-2006, 07:59 PM

Quote:

Originally Posted by mrthumbs

I belive the biggest reason for that no taking off is the name

Agreed, sounds more like a disease or some obscure, small jungle animal with no genetic belongings to any other species.

jimb · 02-07-2006, 08:09 PM

This sounds like what happened to Mark Cuban...only Mark took the money for Broadcast.com

Jim

stereolab · 02-07-2006, 08:12 PM

Quote:

Originally Posted by jimb

This sounds like what happened to Mark Cuban...only Mark took the money for Broadcast.com

Jim

fuckin' a. people say 'oh he was just lucky'. my ass. he knew when to sell. that's not luck.

FlyingIguana · 02-07-2006, 08:15 PM

Quote:

Originally Posted by stereolab

in Pre-IPO stock. Friendster founder Jonathan Abrams rejected it in favor of $13 million in VC funds because the firms valued the company at $53 million. Of course, now, those firms no longer want to fund the company, and Google's stock hit nearly $500 per share.

http://www.findarticles.com/p/articl.../ai_kepm358716

had they taken that offer, they would be worth something like $2.5 Billion

recently they asked Viacom to buy them for $5,000,000. Viacom rejected the offer.

http://www.paidcontent.org/pc/arch/2...1.shtml#053107

damn.

anyone else have bad business decision stories - your own or otherwise?

there's bad and then there's just downright idiotic. they're gonna have to transform the site somehow to maximize value. weird the VC firm didn't assist them in a transition to at least get some chance of a return.

FlyingIguana · 02-07-2006, 08:17 PM

Quote:

Originally Posted by stereolab

fuckin' a. people say 'oh he was just lucky'. my ass. he knew when to sell. that's not luck.

and he bought options for when the stock he recieved tanked. he goes against the herd and made a killing, far from luck.

stereolab · 02-07-2006, 08:33 PM

Quote:

Originally Posted by FlyingIguana

and he bought options for when the stock he recieved tanked. he goes against the herd and made a killing, far from luck.

it will be interesting to see what happens with his HDTV company. content content content.

stereolab · 02-07-2006, 08:39 PM

Quote:

Originally Posted by FlyingIguana

there's bad and then there's just downright idiotic. they're gonna have to transform the site somehow to maximize value. weird the VC firm didn't assist them in a transition to at least get some chance of a return.

there's a major shift going on in the whole 'social networking' thing from relationship-networking to 'shared interest' networking. you can see that with Yahoo's recent buys. http://del.icio.us/ and http://webjay.org/. To me, it makes more sense to network people via shared interest rather than relationships. or even better, a combination of the two. myspace is doing a pretty good job of leveraging its membership base, even though most of the sites on myspace look worse than Geocities circa 1996.

dopeman · 02-08-2006, 11:29 AM

bad business decision bump

warlock5 · 02-08-2006, 11:52 AM

I saw a blog post somewhere that Friendster's recent valuation put it at about $3million. In the meantime, venture capitalists are still pouring millions into it.

Doctor Dre · 02-08-2006, 11:54 AM

I don't think I've ever visited friendster once

stereolab · 02-08-2006, 12:11 PM

Quote:

Originally Posted by warlock5

In the meantime, venture capitalists are still pouring millions into it.

is this true? i haven't seen any recent news about friendster raising any money.

wdsguy · 02-08-2006, 12:23 PM

friendster pheers myspace.

jacked · 02-08-2006, 12:24 PM

friendster is gay anyway myspace is better... facebook is more popular than friendster now a days...

FlyingIguana · 02-08-2006, 12:28 PM

Quote:

Originally Posted by stereolab

there's a major shift going on in the whole 'social networking' thing from relationship-networking to 'shared interest' networking. you can see that with Yahoo's recent buys. http://del.icio.us/ and http://webjay.org/. To me, it makes more sense to network people via shared interest rather than relationships. or even better, a combination of the two. myspace is doing a pretty good job of leveraging its membership base, even though most of the sites on myspace look worse than Geocities circa 1996.

combine the two and you could have a winner

quantum-x · 02-08-2006, 01:39 PM

Quote:

Originally Posted by jacked

friendster is gay anyway myspace is better... facebook is more popular than friendster now a days...

I thought friendster was the asian myspace? ;)

warlock5 · 02-08-2006, 02:03 PM

Quote:

Originally Posted by stereolab

is this true? i haven't seen any recent news about friendster raising any money.

Here is the story I read about friendster's valuation:
http://www.techcrunch.com/2006/02/02...recapitalized/

"The rumor floating around over the last week, which I?ve heard from multiple sources close to Kleiner Perkins, is that the fund has stepped in to stop a shutdown. They have injected limited additional funds (I?ve heard numbers between $5 million and $12 million) and have restructured the capitalization of the company to heavily favor their fund (this would be customary in a recapitalization)."

stereolab · 02-08-2006, 02:11 PM

Quote:

Originally Posted by warlock5

Here is the story I read about friendster's valuation:

... have restructured the capitalization of the company to heavily favor their fund (this would be customary in a recapitalization)."

massive dilution.

imagine had they taken the pre-ipo GOOG stock.

thanks for the link. i usually check that site daily, but missed today.

Drake · 02-08-2006, 02:19 PM

Abrams must be kicking himself

WebairGerard · 02-08-2006, 02:35 PM

bad move for sure

tristan_D · 02-08-2006, 04:02 PM

Friendster is going down for sure

stereolab · 02-08-2006, 11:18 PM

Quote:

Originally Posted by Mike33

Abrams must be kicking himself

i'm sure he is now that his equity is diluted

reynold · 02-08-2006, 11:45 PM

oh my gosh. i hate to bare this - i have a friendster account. it's good, though.

SomeCreep · 02-08-2006, 11:58 PM

Quote:

Originally Posted by wdsguy

friendster pheers myspace.

as they should

02-07-2006, 07:12 PM	#1
stereolab Confirmed User Join Date: Mar 2004 Posts: 798	A Bad Business Decision Thread: In 2003, Google offered to buy Friendster for $30MM in Pre-IPO stock. Friendster founder Jonathan Abrams rejected it in favor of $13 million in VC funds because the firms valued the company at $53 million. Of course, now, those firms no longer want to fund the company, and Google's stock hit nearly $500 per share. http://www.findarticles.com/p/articl.../ai_kepm358716 had they taken that offer, they would be worth something like $2.5 Billion recently they asked Viacom to buy them for $5,000,000. Viacom rejected the offer. http://www.paidcontent.org/pc/arch/2...1.shtml#053107 damn. anyone else have bad business decision stories - your own or otherwise? __________________

02-07-2006, 07:14 PM	#2
uno RIP Dodger. BEST.CAT.EVER Industry Role: Join Date: Dec 2002 Location: NYC Area Posts: 18,450	hah. I always hated friendster. __________________ -uno icq: 111-914 CrazyBabe.com - porn art MojoHost - For all your hosting needs, present and future. Tell them I sent ya!

02-08-2006, 12:24 PM	#18
jacked sperm tail Industry Role: Join Date: May 2004 Location: nj Posts: 11,019	friendster is gay anyway myspace is better... facebook is more popular than friendster now a days... __________________ Got Cam Models? icq: 361-607-616

02-08-2006, 02:35 PM	#24
WebairGerard Confirmed User Industry Role: Join Date: Sep 2005 Posts: 8,113	bad move for sure __________________

02-08-2006, 04:02 PM	#25
tristan_D Confirmed User Join Date: Jul 2005 Posts: 7,865	Friendster is going down for sure __________________ Increase your sales. Up to $4 per click.

02-07-2006, 07:33 PM	#4
jjjay Registered User Join Date: Jun 2005 Posts: 1,813	so google launched orkut instead - how come it never took off? (except in brazil)

02-07-2006, 08:09 PM	#7
jimb Confirmed User Join Date: Feb 2005 Location: Costa Rica Posts: 2,514	This sounds like what happened to Mark Cuban...only Mark took the money for Broadcast.com Jim

02-08-2006, 11:29 AM	#13
dopeman Confirmed User Join Date: Jan 2005 Posts: 294	bad business decision bump

02-08-2006, 11:52 AM	#14
warlock5 Confirmed User Join Date: Jan 2004 Location: Uranus Posts: 2,808	I saw a blog post somewhere that Friendster's recent valuation put it at about $3million. In the meantime, venture capitalists are still pouring millions into it.

02-08-2006, 12:23 PM	#17
wdsguy Ryde or Die Industry Role: Join Date: Dec 2002 Location: California-Shanghai Posts: 19,568	friendster pheers myspace.

02-08-2006, 02:19 PM	#23
Drake Hello world! Industry Role: Join Date: Mar 2003 Posts: 12,508	Abrams must be kicking himself

02-08-2006, 11:45 PM	#27
reynold Too lazy to set a custom title Join Date: Oct 2002 Location: Global Traveler Posts: 51,271	oh my gosh. i hate to bare this - i have a friendster account. it's good, though.