Microsoft Looking to Buy 5% of Facebook

Written by Allen Stern - September 24, 2007
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FacebookThe Wall Street Journal is reporting that Microsoft is looking to acquire a 5% stake in Facebook for $300-500 million which would put Facebook at a $10 billion valuation.

From the WSJ, "The people familiar with the matter said that the discussions are still preliminary and Facebook could wind up not taking an investment from either Microsoft or Google. Factors in the discussions include the valuation the suitors would offer to Facebook and other business considerations they could contribute to sweeten any deal."

I don't think Microsoft and Facebook are a good fit. Microsoft still hasn't been able to satisfy young adults (18-40) need for social services. I am not sure it's a fit for Yahoo or Google either but the team may just sell at some point to maximize the current strong market position and the fanbase the site has currently.

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Submitted by Darren on September 24, 2007 - 3:57pm.
Subject: I think they want it for the

I think they want it for the ads and nothing else. lets face it MS can drop the cash for this and not even blink.

Submitted by centernetworks on September 24, 2007 - 4:02pm.
Subject: Yep Darren

Yep - you are right - so you think the 5% would give them the distro rights for ads? I wasn't sure.

Submitted by Darren on September 24, 2007 - 4:25pm.
Subject: They already have the ads

They already have the ads http://advertising.microsoft.com/facebook

however getting 5% might give them a better leverage. Google own 5% of AOL for the same reason.

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