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Thursday, September 27, 2007

 

Microsoft mulls investment in Facebook


Microsoft is mulling an investment of up to 5.0 percent in the social networking site Facebook, a move that could set the stage for confrontation with rival Google.

The Wall Street Journal, citing people familiar with the matter, said Microsoft had been in contact with Facebook Incorporated over the past few weeks, adding that a 5.0 percent stake could be valued at between 300 and 500 million dollars (213-355 million euros).

But sources said the search engine Google had also expressed "strong interest" in a possible Facebook investment.

The Journal said spokespersons at Facebook and Microsoft declined to comment and were not immediately available at Google.

Facebook, according to the report, is used by 40 million people as a means of sharing personal information, photos and videos.

"An investment in Facebook could give Microsoft or Google greater opportunities to tie their services in with Facebook at a time when they have both recognized that social networking is changing how consumers tap into their core activities, such as Web search and e-mail," the paper said.
-- AFP

   

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