//beconfused

Microsoft is in talks to buy Facebook stake

SAN FRANCISCO — Microsoft Corp. is in talks with Facebook Inc. about making an investment in the social-networking startup that could value Facebook at $10 billion or more, according to people familiar with the matter.

Microsoft’s approach to Facebook in recent weeks with proposals to invest in the fast-growing site is part of the software giant’s effort to catch up with the Internet rival Google. If successful, Microsoft’s talks with Facebook could give it an up-to-5% stake in the closely-held startup — a stake potentially valued at roughly $300 million to $500 million, the people familiar with those talks said.

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.

A Facebook spokeswoman and spokesmen for Microsoft and Google declined to comment.

Source: Wall Street Journal

Microsoft previously had an arrangement to serve advertisements at Facebook. Social Networking is kinda the in thing this year, isn’t it? Google has Orkut already, although the membership haven’t been exactly impressive. Somehow Facebook just have something special I guess.

Possibly related:

1. Even NTU Zi Char Uncle uses Facebook
2. Digg to use Microsoft ads
3. The Zune tattoo guy joins the Social

Tags: facebook, google, microsoft, money, social networking