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09.21.06

Yahoo Flirts with Facebook, YouTube Seeks Partner

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MarketingVOX: Rumors are flying about the possible sale of two hot internet properties, Facebook and YouTube.

Social-networking site Facebook, which has been expanding beyond its core audience of college students, is apparently in negotiations with Yahoo to be acquired for possibly up to $1 billion, according to the NY Times Dealbook blog, which cites a Wall Street Journal article. Facebook has apparently also held separate discussions with Microsoft.

Meanwhile, online video site YouTube is apparently holding out for $1.5 billion in a potential sale - a "magic number" that, according to the New York Post, is far above what media executives are willing to pay for it.

Earlier this year, Facebook's founders said they sought $2 billion in a sale, with Viacom said to have offered $750 million.

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