Friendster Sold to Malaysian Payments Company

Discussion in 'Growing and Managing a Business' started by Fergal, Dec 11, 2009.

  1. Fergal

    Fergal
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    MOL Global the Malaysian payments company has purchased Friendster for an undisclosed figure, believed to be in the region of $100 Million.

    Friendster was a pioneering site in the area of Social Networking. Although it has suffered from competition with newer sites such as Facebook, it has a very strong presence in Asia, where it has in the region of 75 Million users and over 110 Million users world wide.
     
  2. wussa

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    If it had more traffic from the European and US continent the price would have been another zero extra. Nice buy by the way. Facebook? It has just raised to number 2 pushing Yahoo to number 3 in the rank of the world's most popular site. Lol.. Nowdays, Friendster is no match to Facebook.
     
  3. Fergal

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    Just goes to show, the original isn't always the best. It's possible to improve on the service being provided by the market leader and steal their market share.
     
  4. GekiDan

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    So Friendster changing its look is the outcome of this sale...

    Friendster have got alot of traffic from Asian Countries, most coming from South East Asian countries like the Philippines. I have an account there but I rarely update it. But since Facebook debuts, it punches Friendster hard enough for it to roll outside the ring. :D Especially with its Apps which Friendster also tried to use.

    And I can see now that Friendster is full of unused and spam accounts.
     
  5. Fergal

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    GekiDan, I read that the changes to the Friendster layout happened before the sale took place. Hence, I don't think it has anything to do with the new owners.
     
  6. wussa

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    I think GekiDan has a point. Looks like it was changed to the new layout based on the request of the new owner.
     
  7. GekiDan

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    Maybe that's a prerequisites the buyer wants before he buy the said site.
     
  8. Fergal

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    Could well be GekiDan, I'm sure the negotiations were going on for quite some time, before the deal was struck, so you are probably right.
     
  9. Fergal

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    I read today on TechCrunch that the actual sale price of Friendster was closer to $30 Million. A selling price much lower than the initial rumours of $100 Million.
     
  10. GekiDan

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    Maybe it's because Friendster have deeply held back by Facebook...
     
  11. Fergal

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    Probably. Google made a $30 Million offer for Friendster some years ago and the founders turned it down. The offer included Google stock, which has soared in value since the offer was made. Friendster's founders would be much wealthier today, had they have accepted it.
     
  12. GekiDan

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    Maybe they are in deep pain now that they have turned down Google at that time.
    Well, past is past and we can't do anything about it. Anyways, I do hop the new owner of Friendster can make the social networking experience a little bit different from the last owner...
     
  13. Fergal

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    The substantial payment they are getting from the sale should help them get over their disappointment :) I'm sure they will be conscious of the fact that they could have got more in the past, but nothing like a few million to help you get over the past and look to the future.

    As they are a Malaysian company they may focus almost exclusively on the Asian market and carve out a strong niche for themselves there.
     
  14. GekiDan

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    Well, I can say that Friendster is more of an Asian Social Networking site than an international one.
     
  15. simple

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    True but I don't know how profitable Friendster is. As we can see, everyone is on Facebook today. I wonder what is their main strategy.
     
  16. ardee

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    I wonder why friendster has been sold, but one thing I noticed is that they have been affected by facebook domination LOL.
     
  17. GekiDan

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    Yes. It's Facebook domination.
    Friendster is already losing users because of it.
     

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