Facebook Picked Up Friendster's Patents For More Than It Cost To Buy Friendster
from the patent-valuation dept
What's impressive here is that the entire company Friendster had been sold just a few months earlier for... $39.5 million. So the buyer has effectively recouped the purchase price in less than a year. Impressive. As for why Facebook just wasted so much money (even if not all of it is "real") on a bunch of patents? As Liz Gannes postulates, it's probably just to keep the patents from getting in the way of an upcoming IPO. For a company currently valued at such insane levels, $40 million to clear an obstacle to an IPO is nothing major -- especially when a portion of the deal is via in-kind services. Hopefully Facebook knows better than to start using the patents offensively, but somehow, I get the feeling this is not the last we'll hear about these patents.