Negotiations continue between Mark Zuckerberg, founder of Facebook.com, and Yahoo over the sale of the online social network for an estimated $900 million. In January, Viacom offered Zuckerberg $750
million, but the 22-year-old founder countered with a request for $2 billion and was rebuffed. Since then, Facebook's member growth has stalled--holding steady at around 9 million--but a recent ad
deal with MSN will boost display and search revenues. So maybe $2 billion was too much to expect, after all. Two unnamed industry executives said Zuckerberg is now seriously mulling Yahoo's
offer--which they say would keep the company somewhat independent, with Zuckerberg in charge. This has been Yahoo's model in the past with other acquisitions, like Flickr, a photo-sharing site, and
Del.icio.us, a bookmarking service that lets members share lists of their favorite Web sites. Many worry that Zuckerberg's youthful exuberance could get in the way of smart company decisions. "Mark is
the kind of guy you worry needs to get other things in his life," says David Sze, a partner with Greylock Partners, one of Facebook's venture-capital investors. Like Larry Page and Sergey Brin of
Google, Zuckerberg keeps tight control over his company. He still writes code, he designs features, and he is the public face of his creation. Facebook came to prominence just a few years ago as the
de facto online destination for college students to flirt, get their news, and find details on the next frat party. But its growth has been slowing, which is why many think the time is right to sell.
A deal with Yahoo would help the Web portal re-establish its grip on the younger demographic, analysts say--a problem that it needs to buy its way out of. The fate of the deal now lies in Zuckerberg's
hands.
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