Inside Facebook

A few weeks ago, it was reported that Facebook had filed suit against German social network StudiVZ, accusing the company of “replacing Facebook’s blue colour scheme with a red one” and said it was “seeking to end StudiVZ’s illegal activity to ensure that users are not confused and that Facebook’s reputation remains unharmed.”

Today, Kevin O’Brien at IHT reports that before Facebook sued StudiVZ, the companies had been in negotiations “for months” for Facebook to buy StudiVZ. However, StudiVZ’s owner, the Holtzbrinck Gruppe, is asking for “several times” the reported $134 million it paid for the site last year.

“Facebook may have the superior technology, but it doesn’t have the users in Germany,” said this executive [close to the deal], who insisted on anonymity because the talks were confidential. “That is what Facebook wants with StudiVZ.”

Due to pending legal action, both companies refused to comment.