After Yahoo, Microsoft is now flirting with Facebook
Software giant Microsoft, which has come under pressure due to its failed bid to acquire Yahoo, aims to close the gap with its archrival Google through the social networking platform Facebook. As the Wall Street Journal reported on Thursday, the company intends to realign its strategy in the online business.
The software giant Microsoft, which has come under pressure following its failed acquisition of Yahoo, wants to close the gap on arch-rival Google with the social networking platform Facebook. As the Wall Street Journal reported on Thursday, citing well-informed circles, the company from the US state of Washington intends to realign its strategy in the online business. Analysts believe that a takeover of Facebook can no longer be categorically ruled out in the long term following the Yahoo failure.
According to initial information, there have been no informal preliminary talks between the Facebook management around CEO Mark Zuckerberg and Microsoft's investment bankers regarding the exploration of a complete takeover. Nevertheless, the software giant has sent the first discreet signals, according to the US news portal AllThingsD. Although neither company has yet commented on the rumors, many analysts believe that there is growing evidence of a serious takeover plan by Microsoft.
It was only in October 2007 that Redmond acquired a small stake in Facebook for 240 million dollars. This meant that the company, which had once started out as a student project, suddenly had a market value of 15 billion dollars. Insiders attribute Microsoft's interest in Facebook to its profitability. After 150 million dollars in 2007, a profit of between 300 and 350 million dollars is expected for 2008. Gates announced after the drama surrounding the purchase of the Internet company Yahoo that there would be no more joint cooperation with Yahoo and that both companies would go their own ways with immediate effect.
Previously, Microsoft had tried in vain for three months to convince Yahoo boss Jerry Yang to invest the last 47.5 billion dollars (Advertising Week reported, see
). Meanwhile, Google and Yahoo have confirmed the conclusion of a test partnership, which is seen in the industry as a sign of longer-term cooperation in the advertising business. The fact that Microsoft is now flirting with Facebook has led to rumors of further acquisitions by the software giant. As Microsoft has announced its intention to focus on an "independent strategy", smaller start-ups in particular are being considered. As Microsoft has emphasized in an internal letter to staff that it wants to invest in the online services division, the online community portal MySpace, operated by News Corporation around media mogul Rupert Murdoch, is also considered a possible takeover target.
