MS Facebook
Setting the stage for a possible bidding battle, Microsoft Corp. is mulling an investment in Facebook Inc. that would value the rapidly growing online hangout at $10 billion or more, according to a report published Monday.
Citing unnamed people familiar with the matter, The Wall Street Journal said Microsoft is holding preliminary discussions that could culminate in a $300 million to $500 million in Facebook, a Palo Alto social-networking site founded just 3 1/2 years ago.
Interesting, but here is the information that caught my attention:
An outright sale of Facebook is considered unlikely. Mark Zuckerberg, Facebook’s 23-year-old co-founder and chief executive, has repeatedly expressed his desire to remain independent. He rejected a $1 billion acquisition offer from Yahoo Inc. last year.
23-year-old CEO is remarkable.
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Posted By Derrick Moe | Networking | |
One can argue with the valuation, but Facebook makes strategic sense for Microsoft, regardless of how rich the founders become, how long its been in business and whether or not it remains independent. I just posted on this.
Chet - thanks for the comment. Here’s the link to his post: http://dotcomstrategist.com/2007/09/25/the-genius-of-facebook.aspx.
I liked this quote from your post - cuts right to the quick of Facebook’s value:
“Second of all, and more to the point here, whether Facebook visitors and users pay attention to ads served up on the site is all but irrelevant. What is relevant is the incredibly rich user profile data collected by people literally pouring their personal details into the Facebook database.”
Good post.