Microsoft to invest on Facebook
Written on September 24, 2007 – 3:09 pm | by admin
According to this news article, Microsoft is negotiating with Facebook, one of the largest and fastest growing online social networking websites, to purchase a monority share in the tune of $300-500 million.
Citing people familiar with the matter, the Journal said the world’s largest software company sought to buy a stake of up to 5 percent in Facebook for $300 million to $500 million.
Facebook, led by its 23-year-old founder and Chief Executive Mark Zuckerberg, may insist on a valuation as high as $15 billion and is considering raising up to $500 million in cash to expand its operations, according to the Journal.
Microsoft is already serving online ads to Facebook users. This latest move is obviously another attempt by Microsoft to remain relevant in the computer world as online applications are threatening to take a large bite out of its software business. At the moment, Google is the biggest company going after Microsoft’s office business with their online suite of applications slowly gaining acceptance by computer users.