Menu
Report: Microsoft seeks Facebook stake

Report: Microsoft seeks Facebook stake

Microsoft has approached Facebook with proposals to buy a stake in the social-networking company, according to The Wall Street Journal.

Microsoft Corp. has approached Facebook Inc. in recent weeks proposing an investment that would give Microsoft a stake of up to 5 percent in the popular social-networking company, The Wall Street Journal reported Monday.

With Microsoft willing to invest between US$300 million and $500 million, the deal would value Facebook at $10 billion or more, the Journal reported, quoting anonymous sources.

Google Inc. has also expressed an interest in acquiring a Facebook stake recently, according to the Journal. Thus, Microsoft could find itself competing for Facebook's attention with Google.

However, Facebook's discussions with Google and Microsoft are in the early stages and could end up with no agreement with either suitor, according to the Journal.

IDG News Service's requests for comment from Facebook, Microsoft and Google weren't immediately answered.

Founded in February 2004, Facebook is one of the world's most popular social-networking sites with about 42 million active users. Facebook has been growing strongly in the past 12 months. In December, it had about 12 million active users.

The site initially only admitted students, but last September it lifted that restriction. In May of this year, it opened up to third-party developers to create applications for the site, which has also added to its popularity with users.

Along the way, it has caught the attention of big Internet players like Microsoft, Google and Yahoo Inc. The latter reportedly tried to buy Facebook last year for $1 billion.

Facebook's attractiveness is that it builds very strong and deep relationships with its users. Over half of its active members return to the site daily, and Facebook knows a lot about them, thanks to all the personal information people disclose on their site profiles and interactions with other members.

This, in turn, offers a desirable audience to advertisers and to ad sellers and distributors like Google, Microsoft and Yahoo. A little over a year ago, Facebook chose Microsoft to display banner ads on the site.

Facebook would be interested in using the cash raised from selling a stake for buying other companies, increasing its staff of about 300 and beefing up its technical infrastructure, the Journal reported.

Facebook is also weighing the option of raising funds from financial investors, the Journal said.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments