New acquirer in town: Facebook
May 18, 2012
Although it’s unclear if Facebook’s IPO this morning will help any Southern California companies get to their own IPO exit, there’s one thing that’s bound to happen (given the immense amount of money just raised by Facebook): it’s bound to take Facebook to the top of the companies with the most cash and buying power on hand to acquire Internet startups. Usually, the combination of lots of cash on hand (from the IPO) and large acquisition pocketbook (cheap capital via inflated stock price) drives many a strategic acquisition in this industry. It seems that every startup pitch you see has always has some big target acquirer (it’s moved over the years from Microsoft to Google, and now it looks like Facebook). This should be interesting…
