The Reason why Facebook need to buy Nokia & Yahoo

Share

Tweet

Facebook was rumored would be increasingly aggressive in implementing its business strategy after the IPO. Facebook not only acquired small company, but the giant company like Nokia and Yahoo also believed will be their next acquisition target.

Here are some reasons why the site made by Mark Zuckerberg need to buy Nokia and Yahoo:

Reasons to buy Nokia

1. Preparation to challenge Apple and Google who have committed to combine the hardware and software solutions in mobile phone.
2.  Alex Cocotas of BI Intelligence predicts that by 2016 there will be 1.5 billion smartphones sold. Again, Apple is believed to be a major player in this segment with a power that is projected to reach 35% market share. On the other hand, Google began to move with the action of the acquisition of Motorola.
   
   "And what about Facebook? Are they still going to rely on IOS and Android applications, and rely on advertising? If so, I strongly disagree with this strategy. As the future competition will be tougher than they think," said Eric Jackson, a technology observers who is a founder of Ironfire Capital LLC.
   
   For that, he believes that Facebook will not surrender to the fate, so they will have their own cell phone.
3. Facebook should be able to figure out how to make money from the gigantic amount of their facebook traffics who have reached 845 million visitors / day. Well, the phone was mentioned to be of particular importance because Facebooker has strong linkages with the handheld every day. 
4.  Nokia is now close to Microsoft. On the other hand, Microsoft is also a partner and one of the Facebook investors. 
5. Mark Zuckerberg is considered have strong ambition to conquer China. Because, at China Facebook can not be used because they have to face a very strict regulation squeezed from the government there. China is a very prospected because of its population that reach more than 1 billion people. Facebook COO Sheryl Sandberg ever told Zuckerberg that it would be easier for them to open business in China through Nokia.
6. Copyright and patent war. It is clear that the vendors are now more cautious in bringing a new innovation, because the patent sometimes often cause dispute with other company. 

Reasons to buy Yahoo

1. Patents are the major consideration. Yahoo is now reportedly has 3,300 patents, while Facebook only have 160 patents. The difference is too far away. Facebook is known as a company that doesn't build patents portfolio.
2. Although Yahoo is reportedly often in a position to compete with Google, Yahoo still have 700 million users every month. This can also be used to make Facebook growing. Facebook itself is projected could reach in revenue of $ 5 billion in 2012, while Google in the last 12 months managed to reach $ 38 billion in revenue. These earning figures are still far away, but if later the number of Facebook users combined with Yahoo users, then they can compete Google.
3. This will bring Facebook to search engine business, which as one potential to pursuit additional revenue.
4. Facebook needs experienced talent in the Internet industry. One of the main target is Scott Thompson, Yahoo CEO.
5. Yahoo can be acquired with fairly cheap price. Assumes that Yahoo shares valued at $ 30 per share. So, if Facebook interest to buy Yahoo, the money spent for entire ownership is only about $ 37 billion.