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Microsoft Still Shopping; Approached Facebook

May 7th, 2008 @ 11:23 am

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Tags: Microsoft Corp., Facebook, Channel Management, Strategy, Web Site Development, Marketing, Management, Internet, Larry Dignan

Microsoft, just a few days removed from walking away from its Yahoo bid, is reportedly sniffing around Facebook.

According to Kara Swisher, Microsoft’s bankers contacted Facebook to see if Mark Zuckerberg and company would be interested in selling the company. The Wall Street Journal also reported the same thing, partially citing Swisher. There are no active talks.

Who knows if Facebook would sell to Microsoft, but it’s pretty clear that the software giant wants scale and has about $45 billion or so burning a hole in its pocket.

A few things to note:

  • Microsoft CEO Steve Ballmer has mentioned that Facebook would give the company some Web scale. And Microsoft already owns a 1.6 percent stake.
  • If Microsoft ever wanted to pressure Yahoo some window shopping would certainly turn the heat up on Jerry Yang and his disgruntled investors.
  • This won’t be the last you hear about Microsoft shopping around. It will roll up a bunch of Web sites–it’s a matter of when and who not if.

Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations. Credit: ZDNet.

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