Facebook Offers $85 Million for Zhanzuo.com?

The Times Online is reporting that Facebook has offered $85 million for Zhanzuo.com. I had seen a rumor about this a few weeks back but now the Times Online appears to be semi-confirming it. Honestly, I’m not quite sure if there is some sort of cultural miscommunication or if I’m completely misunderstanding the article. As the article states:

A spokeswoman told The Times that Jack Zhang, Zhanzuo’s chief executive, and Mark Zuckerberg, the Facebook founder, were acquainted but this did not mean that they intended to reach a deal — for the moment.

Is that confirmation of the offer? Either way, Facebook has been rumored to be attempting a Chinese entry after their recent acquisition of the Facebook.cn domain. China is a difficult country for American companies though. Both Yahoo and Google have been forced to censor specific content at the request of the Chinese goverment. Additionally, there are already competing social networks in China that have gained a large base of users. Granted, China will soon have the largest web based population. The competitive landscape has only begun to reveal itself.

An acquisition by Facebook seems a bit prematured given that Zhanzuo.com only has 7 million active users whereas Facebook has over 50 million. Also, according to Alexa.com data (which is famously inaccurate), Zhanzuo.com suffered a significant drop in traffic just a few months back. I’m sure there may be another explanation but making such a large investment seems extremely risky. I seriously doubt that this deal ends up happening.