Microsoft, Google Looking To Reserve Respective Spaces In Facebook
by
on September 25, 2007,
As the saying goes, if you can’t beat ‘em, join ‘em.
Rather than swim against the tide, as it were, Microsoft and Google are allegedly looking into investing in it. Red Herring, the magazine that analyzes the workings of Silicon Valley and the tech world at large, reported yesterday that the head honcho of Redmond and Mountain View’s finest are both showing signs of interest in buying their own personal slices of Zuckerberg’s uber-popular pie, Facebook.
Based on a rough $10bn value estimation of the social network/platform, it’s said that Microsoft has been looking to grab a slight 5 percent of the company, translating into a $300-500 million investment. Google’s interest in the operation is also palpable, claims the Wall Street Journal, as relayed in Red Herring, though no number has yet been pegged concerning the share it seeks.
This series of revelations are fairly tasty to those watching this venture-funded Web superstar, which is supposedly looking to “expand its operations,” which it will allegedly need a very large infusion to do. How large an infusion? $500 million, says the WSJ.
One might wonder why Microsoft or Google would invest in the company if one or the other purchased a piece of its own. (In other words, why would Google invest if Microsoft did? And vice versa.) But one can also wonder how the heck either party could seriously compete with the already well-established player. And, considering the fact that Facebook has clearly laid down some strong roots - roots that all but ensure the company a relatively lengthy future - it does make sense that tech industry veterans such as Microsoft and Google see the operation for what it is and go with the flow.
If you’re looking for a heated contest to erupt between the two giants, however, it’s doubtful you’ll see anything very interesting in the days, weeks, and months ahead. If one officially inks out a price and the other subsequently trumps that figure, perhaps for an even larger share, don’t expect a game of who-can-best-whom to result. Besides, it’d hardly be in either party’s best interest to perform such a spectacle.
Check back for more news on the matter as it comes in.
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