Yahoo in talks to buy FaceBook?

According to the Wall Street Journal, Yahoo are in talks with Face Book, the seventh most tracked site in the US, as well as the number one site for uploading photos (ahead of even Flickr). The proposed figure for the sale could be for as much as $1 billion. Not bad for the 22 year old founder and Chief Executive of the company!

NewsCorp last year bought Face Book rival MySpace for $580 million, which at the time was seen as a massive amount for this internet company. Clearly Yahoo aren’t worried by that, buying into the perceived potential for advertisers on Social Networking sites.

Caffeine Marketing highlights the timing of this rumour, following swiftly after Yahoo’s news that they were going to post significantly less profit than expected, due to a fall in advertising revenue. Is this a well-placed rumour to buoy investors?