Microsoft May Buy 5% Stake In Facebook

The article Microsoft Is in Talks To Buy Facebook Stake from the Wall Street Journal reports that Microsoft is in talks with Facebook to place a 5% stake in the company, putting the valuation of Facebook at $10 billion.

The Wall Street Journal said that Google “also expressed strong interest in a possible Facebook investment,” so there might be a bidding war taking place over Facebook.

A few months back we reported that Yahoo May Buy MySpace For 25% Stock Swap, but nothing on that news yet. Is this Microsoft/Facebook deal going to happen? The Wall Street Journal claims that people close to the deal say that it is way too early to tell. Microsoft, Facebook, and Google have not made any statements on this report as of yet.

More coverage on the Microsoft/Facebook deal at Techmeme.

Related Topics: Channel: Social | Facebook | Microsoft: Business Issues


About The Author: is Search Engine Land's News Editor and owns RustyBrick, a NY based web consulting firm. He also runs Search Engine Roundtable, a popular search blog on very advanced SEM topics. Barry's personal blog is named Cartoon Barry and he can be followed on Twitter here. For more background information on Barry, see his full bio over here.

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  • Toivo Lainevool

    I think you got that a little wrong. It’s not a $10 billion dollar stake, it’s a 5% stake that would put the valuation of Facebook at $10 billion. A $10 billion valuation is crazy enough, the way you reported it gives Facebook a $200 billion dollar valuation!

  • JonKelly

    Barry, the headline and the first paragraph aren’t quite right. According to the article MSFT is looking to take a minority stake that would value the company at $10BN. Still, an amazing valuation for a private company given their current revenue.

  • wildewon

    You have your numbers mixed up.. MS is not considering a $10 billion stake in facebook. MS is considering a $300-$500 million stake in facebook.

    Depending on the percentage of the company MS would acquire with the $300-$500 million (up-to 5%) this would give facebook a total valuation of $10 billion +.

  • rustybrick

    Geez, Ill fix the headline… Although it may have read a bit off, technically, I did not say MSFT is giving Facebook $10B. I said they are getting a stake of a $10b company. But I will clear it up…

    Thanks! :)

  • JonKelly

    Barry, thanks for chaning that up! Just for the record, I didn’t see the other comment when I posted mine — I think we all had the same instant reaction and it took the system a bit of time to put all of the comments up.

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