With many social networking sites considered as hot items in the investment world, there are also rumors that online address book service/social network site Plaxo is also up for grabs.
According to Reuters, the company is contemplating an unsolicited offer worth $200 million and has hired Revolution Partners to be its adviser. However, both firms are tight-lipped on this issue.
Is this a logical step? Analysts believe this is the best recourse for any mid-tier company like Plaxo if they want to survive in this very cutthroat playing field.
Whoâ€™s willing to acquire Plaxo? Osterman Research head Michael Osterman said Facebook and LinkedIn might be interested because it makes a lot of sense for a consumer-oriented social network to augment its service by adding a business-oriented social network.
Well, this is not the last of any social network acquisitions. Osterman predicts bigger social networks will acquire smaller social networks over the next 18 months as a way to expand their business.