Yahoo Keeps Its Eyes on Facebook

Is Facebook really worth $1 billion? Analysts easily agree the answer is yes. Whether it's worth that much to Yahoo!, however, is a more complicated question. The Web portal initially offered Facebook $1.4 billion, according to people familiar with the deal. Talks broke down in July, about the time Yahoo shares lost 20% of their value on news that its new targeted advertising technology would be delayed. Sources close to Facebook say there has been no new deal, but discussions could easily resume. Speculation that a transaction may be in the offing surfaced on Sept. 21, after The Wall Street Journal reported that Facebook and Yahoo are in "serious" talks on a deal.