"Social networking is a fad but we could still invest up to £250 million in Facebook!"
Last week, rumours were abound over Microsoft's interest in Facebook
. The company could be looking at investing between £150 and £250 million for a five percent stake in the company. Don't hold your breath though because Steve Ballmer is now saying that social networking is just a fad.
“I think these things [social networks] are going to have some legs, and yet there’s a faddishness, a faddish nature about anything that basically appeals to younger people
,” Ballmer said to Times Online
Ballmer would not comment on the talks between Microsoft and Facebook but he did hint as to how the investment holds value. Particularly the the networking environment where talk and use of applications can spread much faster than otherwise possible.
In a move to dispel Facebook's valuation reaching up to £5 billion if Microsoft does invest in the company, Ballmer said, “There can’t be any more deep technology in Facebook than what dozens of people could write in a couple of years. That’s for sure
Ballmer also commented that sites from the olden days of the Internet such as Geocities "had most of what Facebook has
Did you know that Geocities was a social networking site? I didn't either but let us discuss Ballmer's other enlightening points over in the forums