Web: We've got to act fast, sir. All of our competitors are out spending big bucks on strategic deals. We're getting left behind! Internet advertising is going to be $42 billion in a few years!! We need to position ourselves now!!
IG: I don't know web...seems like lots of these deals are way to rich...I mean $15billion for face book? Do they even make $100mm annually in revenue? I've heard $200mm can't even get you a deal anymore. And look what you get for $300mm these days....I don't know. Wht happened to the old build it vs. buy-it analysis?
Web: You can't just build users base - or a network effect. It's either there or it isn't. And, yes, we get good traffic on our sites - but there's no network effect...and we need one...yesterday!
IG: ok, ok - what do you have in mind.
Web: Sir, I'm just giddy over this one. I can't beleive it's still out there. You remember Digg? The social news site?
IG: Right. the one where the kid says he's worht $62mm, even though they make no money.
Web: Ancient history, sir. They're tearing things up these days. 11.5 mm uniques according to comscore. Huge network effect. Very passionate users.
IG: Go on....
Web: Well sir. They're amenable to an aquisition with a forward thinking partner like us. They can see we understand their goals and want to grow their business. Which is why they're open to selling to us for...get this...only $300mm.
IG: cough, cough....$300mm?? Seems rich. Well, if you think it's a good idea Web, we can probably sell it to the big man. Before we head up to his office though, let's just do a quick search to see what the buzz on these guys is....
Close up of IG's screen:
IG: Ummmm, on second thought Web....I'm late for a tee time. Let's brief the big man some other time. In the menatime, keep digging - no pun intended - to see what else is out there deal wise.