September 25, 2007

Mircrosoft and Facebook Team Up, But Is microsoft picking up a stake in Facebook ?

Microsoft and Facebook is hot search term thanks to the rumorthat is spreading like Wild Fire in the blogosphere. According to WSJ Microsoft could purchase upto 5% stake in facebook at a cost in the range of $300 million to $500 million. The rumors are strengthened by the announcement by Microsoft that they and Facebook Team Up for Advertising Syndication to the more than 9 million registered users of Facebook.

Facebook has been always a target for a buy out or a stake by the big 3 of the internet world Google, Yahoo and Microsoft. But Mark Zuckerberg and Facebook kept turning down offers unheard before for a start up company giving way to theories of an upcoming IPO !

Facebook’s valuation which is currently at $10 billion could go even higher as the rivals create a bidding war !