engine - 2:53 pm on Oct 11, 2006 (gmt 0)

Yahoo is under pressure to clinch a deal to acquire Facebook.com, the No. 2 U.S. social networking site, to recapture momentum from Google after that company struck a deal to buy YouTube, analysts said Tuesday. Google's deal to buy video entertainment site YouTube, announced on Monday, has raised the bar for other major Internet players to strike quickly as confidence in the sector grows and valuations rise, industry insiders said. A Yahoo acquisition of Facebook, the dominant hangout for college-age students, could approach $1 billion, these people say. Industry sources have previously said the pair have held talks although it is unsure what stage these are currently at.

Google Merger Ups Pressure On Yahoo To Strike Deal [usatoday.com]