Facebook may gain between £150 to £250 million if Microsoft purchases up to five percent of the company.
Microsoft is in talks to purchase up to five percent of Facebook - at least according to the Wall Street Journal
it is. Should the deal go through, the company could be valued at more then £5 billion. Microsoft is looking to pay between £150 and £250 million for the shares.
Facebook is already trying to attract developers to the website. The company hopes to turn it into a full-fledged web platform for gaming, news, and other applications. Our own forum members have even jumped into Facebook development with David Verhasselt (AKA Relix) developing a Facebook version of his webcam tool Seenly
This move by Microsoft will help bring the software giant further into the realms of the internet. While already synonymous with operating systems and office productivity software, the company hasn't really taken off in areas that rival Google has exceeded in. Investing in Facebook will offer a jump-off platform to get new online software out to the public. There has already been cases of developers selling their applications after they've become popular on Facebook.
Microsoft already has an exclusive advertising agreement with Facebook until 2011.
Facebook currently has around 39 million members and is still growing compared to rival MySpace's 200 million userbase. The company hopes to sell shares on the stock market eventually.
If there is any fact to the rumours, one thing is for sure - Microsoft and Facebook are keeping quiet on any negotiations that are taking place.
Are you a member of Facebook? Join the bit-tech group and then head over to the forums
and leave your thoughts on this move by Microsoft.