Both Yahoo and Facebook have failed to take an official position in relation to the acquisition, and have declined to issue comments reveling details about the ongoing negotiations. With the acquisition of Facebook, the Sunnyvale Company will own a major landmark and online property of the social network landscape, and a direct competitor of MySpace.com. Yahoo is prepared to invest heavily in this initiative, reports suggesting that Facebook may be worth approximately 1 billion dollars.

With just a fifth of the traffic brought in by MySpace.com - which was acquired by News Corp for $650 million - the social networking website may transition under the Yahoo umbrella brand; all this, in spite of 22-year-old CEO Mark Zuckerberg's statement that an eventual acquisition is not on the priority list. Facebook has already been the focus of negotiations with Yahoo. Microsoft and Viacom proved interested as well.

Founded in 2004, Facebook's main audience is made up of campus students across the United States. According to traffic statistics delivered by comScore Media Metrix, in August 2006, the website accounted for 14.8 million unique visitors and an average of 437 viewed pages.