Microsoft may pick up a 5% stake in the online social networking site Facebook. And the price that Microsoft is poised to pay ranges from $300 million to $500 million, taking the estimated worth of the site to $10 billion.
A quote from the article at Guardian:
Facebook began as a site where university students could stay in touch with friends by exchanging photos, messages, electronic "gifts" and tips. But since Mr. Zuckerman threw it open to all entrants in September last year it has been gaining 200,000 new members every day. Of its members, five million are from Britain.
Earlier, Facebook had invited interest from Yahoo and Google, with Yahoo agreeing to pay the amount of a billion dollars, but the deal fell through. The move from Microsoft seems to be making attempts at creating larger avenues for gains in online advertising.
Facebook currently has more than 40 million users with about 200,000 new member signing up every day! Microsoft's move into the online space is bound to invite its share of criticism from the online community. But, the bigger question is whether the company can do better than its younger and more well-accepted competitors.
More news links:
The battle for Facebook (The Independent)