Evaluating Friendster Sale at 26.4 Million
December 16, 2009 by Pablo Palatnik
Michael Arrington reports on the sale of Friendster on TechCrunch valued at $26.4 million. Friendster was one of the first and largest online social networking sites like Facebook but quickly came to a steep decline with the launch of Myspace. Friendster, even though the buyout was at a very low price for what it once COULD HAVE been, is maybe the right decision as with the explosive growth of Facebook, you need to take the company in another direction.
Arrington reports:
The total purchase price paid was $39.5 million. But lots of stuff was deducted, totalling $13 million and change:
* $3.7 million in secured debt
* $2.5 million in cash in Friendster’s bank account
* $2.1 million paid to Friendster CEO Richard Kimber
* $1.4 million to other Frienster executives
* $3.4 million to Morgan Stanley and other third parties (lawyers, escrow agents, etc.)
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The decline in traffic has been drastic compared to the other large social networks and with less traffic, comes a lot less revenue stream.
Read the whole story @ TechCrunch.com ——–> Friendster Valued At Just $26.4 Million In Sale
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