There has been much speculation circulating recently over a potential acquisition of Facebook by Google. The two have been getting close and based on the recent spending spree Google has gone on with YouTube and DoubleClick, should the company decide they are interested there will be little getting their way.
There is concern though about the rumored talks between the two internet mainstays. Should Google seriously consider acquiring Facebook, they will have to take every precaution to not damage the still pending $900 million agreement with MySpace.
The social network, MySpace, is responsible for about 11% of Google’s search traffic.
There is no “non-compete” clause at current in the Google/MySpace agreement. There are theories that if they acquire Facebook, Google may push Rupert Murdoch, along with MySpace, over to their largest competitor — Yahoo.
The push for Yahoo to barter with Murdoch for MySpace is already on the table.
According to some experts, it has also been suggested that Facebook will file an S-1 to increase its valuation at the last-minute during the negotiation process.