Friendster for sale

Filed in archive Venture Capital on November 18, 2005

Friendster is apparently busy selling the company to a new owner as CNET reports:

"The San Francisco-based company has hired Montgomery & Co., a boutique investment banking firm in Santa Monica, Calif., to find a buyer, CNET News.com has learned. Company executives have been talking to several Internet media companies about an acquisition, according to those sources.

Friendster spokesman Jeff Roberto declined to comment for this story. A spokeswoman from Montgomery said the company could not confirm nor deny whether Friendster is a client.

Earlier this year, Friendster was shopping for a buyer, and according to one source, it was looking for a sale price in the ballpark of $200 million. Now its price has been lowered to the range of $50 million to $100 million, the source said."

Friendster's was supposedly valued close to $ 60 million in 2003. So $100 million would be a good deal.

Be sure to check our revamped Social Networking Weblog for more coverage (Robyn also gave me this hint).