Microsoft could value Facebook at $10b
MICROSOFT is in talks to buy into Facebook in a deal that could value the online company at $US10 billion, according to reports. The move could give Microsoft more access to young users and let Facebook get closer to a major software maker at a time when its growth is increasingly tied to a proliferation of small applications from independent developers on its site.
Citing people familiar with the matter, the Journal said the world's largest software company sought to buy a stake of up to 5 per cent in Facebook for $US300 million to $US500 million.
Facebook, led by its 23-year-old founder and Chief Executive Mark Zuckerberg, may insist on a valuation as high as $US15 billion and is considering raising up to $US500 million in cash to expand its operations, according to the Journal.
Such a deal could help Microsoft better compete against web search leader Google Inc for a growing base of online advertising and put one of the internet's hottest names in Microsoft's camp.
