Microsoft Buys a Stake in Facebook for $240 Million…

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Microsoft is looking to close a deal to buy a 1.6% stake in Facebook for $240 million. Some projections had the deal as high as $1 Billion!

The deal has not been completely confirmed, but insiders have definitely heard that Steve Ballmer is close to completing a deal to counter Google in the social networking website market. Considering that Bill Gates is slowly ceding control to Ballmer and that his focus is in web services, it made sense to grab the most noteworthy social networking site available on the web.

What could happen long term? Unlike the Yahoo deal, Facebook actually fits into Microsoft’s portfolio, since they don’t have a social network. What Microsoft does have is Windows Live Spaces, the most popular blogging service on the planet, along with a million other web tools and interfaces which really makes this a marriage made in heaven. If the acquisition happens, Facebook would probably be combined with Microsoft’s ‘Live Spaces’ team, and the two services should become one. Live Spaces should become the blogging component of Facebook. Features of Facebook will probably also become full-fledged services with those of Live Spaces, like ‘Photo Sharing’. ‘Soapbox’ could be integrated with Facebook for video sharing, and Microsoft ‘Live Messenger’ has  integration potential as well for messaging, notifications, etc. ‘Windows Live Search’ will probably be at the top of every Facebook page as well.

Curent owner of Facebook, Mark Zuckerberg will undoubtedly use this influx of cash to finance a move to take the company public sometime next year. In the end…not a bad payday for a kid who started facebook in his college dorm room.

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Posted on October 25, 2007, in Media, Politics and tagged , , , , , , , . Bookmark the permalink. 2 Comments.

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