With Yahoo in Microsoft’s rearview (for at least a couple months until it doubles back), the acquisition gaze shifts forward. We laid out a few names over the weekend. One of them: Facebook. Now word is already coming in that the social networking site may be bubbling to the top of Microsoft’s list, according to BoomTown’s Kara Swisher.
There isn’t too much to go on yet. In fact, Swisher only mentions this possibility briefly in her larger post about Microsoft’s “Project Granola” (the nickname for Microsoft’s online strategy post-Yahoo), which may be the most bland nickname ever (both in name and in taste). Swisher reports that Microsoft’s bankers are putting out subtle signals at this point that the software giant would perhaps like to buy a larger stake in the company (Microsoft already owns 1.6 percent) — like all of it.
Some Microsoft execs are also said to be tossing out the idea to Facebook execs. “We just want to gauge their interest, more than any real effort,” a source tells Swisher. This sounds a lot like, “we don’t want to get publicly burned again if we’re barking up the wrong tree.”
Rumors swirled last year about Microsoft buying Facebook prior to what ended up being a $240 million investment. Naturally, Google was said to be the other party in pursuit of a stake in the social networking company, but lost out when Microsoft’s deal put Facebook’s total value at $15 billion. Microsoft does have significantly more than that laying around now thanks to the failed Yahoo bid. It would probably use it, but Facebook is still thought to have its loftier IPO goals. As such, these rumors are likely to stay rumors, but don’t expect them to go away until Microsoft makes that next big purchase we all know is coming.
[photo: flickr/Zesmerelda]
8:37 pm
WinExtra » From the Pipeline - 5.7.08 said:
[...] The Microsoft buying Facebook rumors commence, again :: VentureBeat - see what happens when Microsoft doesn’t buy Yahoo - the rumors start breeding all by themselves. [...]
9:21 pm
Knife approaches back: Google considering walking away from Yahoo search ad deal » VentureBeat said:
[...] confirming earlier reports of Microsoft approaching Facebook about a potential sale following the Yahoo fall out, The Wall Street Journal has a very interesting [...]
12:00 am
Taking the Bridge » The Value of Facebook, Techmeme, or any Other Scoble Favorite said:
[...] MG Siegler: The Microsoft buying Facebook rumors commence, again [...]
2:04 am
Punditwatch » Blog Archive » VentureBeat Predicts Microsoft Might now Target Facebook said:
[...] VentureBeat is reporting rumors starting to swirl around that post the Yahoo non-deal, Microsoft is looking for a big acquisition to get them properly into the web space. And bubbling to the top of the list is, wait for it, Facebook. [...]
11:20 am
Powder keg or conjecture? Microsoft buying Facebook could start Internet War I » VentureBeat said:
[...] a plausible idea. Right after the initial Microsoft/Yahoo deal fell apart, there were whispers that Microsoft was gauging Facebook’s interest in an outright purchase (Microsoft bought a small percentage of the social networking site last [...]
4:13 pm
PunditWatch: Interesting, fun, but slightly flawed » VentureBeat said:
[...] I see some problems in other future predictions the service has us down for. It has us prediction that Microsoft will buy Facebook before the end of 2009. Certainly I believe that Microsoft wants to, and I’ve written about that, but I happen to believe that Facebook will not sell to them, at least not this year — which I’ve also said. [...]
4:23 pm
A social graph discussion breaks out at a legal fight » VentureBeat said:
[...] when you consider that Google rival Microsoft owns a share of Facebook (and almost certainly would like to buy more given what has happened with Yahoo striking a deal with [...]
11:54 am
Microsoft takes control of Facebook search, expands ad deal » VentureBeat said:
[...] to expand its deal with Facebook when its attempt to buy Yahoo fell apart. There was even talk of Microsoft gauging the social network’s interest in buying the entire company with part of the $40-$50 billion it had marked for the Yahoo [...]