It seemed like a done deal. That is, Microsoft (NASDAQ: MSFT) was going to write a check for $400 million to $500 million for a 5% sliver of Facebook.
OK, maybe not.
This week, Microsoft's CEO, Steve Balmer, opined on the matter.
Basically, he confirmed that the company is happy to be an advertiser on Facebook – but dismissed the "everything" else as just speculation. Interestingly enough, he even said that social networks can be "faddish" because of the young audiences. Oh, and he thought Facebook's technology wasn't too tough to replicate.
Keep in mind that Facebook gets a big chunk of its revenues from Microsoft. So, it does make sense that Balmer would use some hard-knuckle negotiation, right? Might as well use the bully-puppet too?
So despite all the chatter, I still think there may be a deal. But for Facebook to get a $10 billion valuation may be wishful thinking. Or so Balmer hopes.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
10-03-2007 @ 2:23AM
Ruth H. Loud said...
Seems to me it would be better to sell Microsoft to
Facebook for 10 billion.
Ruth H. Loud
loudmr03@aol.com