The Tide Has Changed in Silicon Valley

Yesterday evening the news broke that Facebook had made its first acquisition, Parakey. The acquisition signaled their intentions to take Google head on. The move is an extremely bold statement by Facebook given that they are up against a massive company. Michael Arrington hypothesized that their rationale to go with Facebook was that they were offered pre-IPO Facebook shares in addition to cash. Soon after the news broke, Google released last quarters earnings. Unfortunately, Google missed causing the stock to drop 7 percent.