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Vahe Habeshian
Vahe Habeshian   BIO
09.25.07

In Stake Talks, Microsoft Prices Facebook at $10BN; Google Interested Too


MarketingVOX: In yet another sign pointing to Facebook’s explosive growth, Microsoft has expressed interest in buying a stake that could value the social network at US$ 10 billion or more if talks prove successful.
The deal would entail that Microsoft pay between US$ 300 million and US$ 500 million for an up-to-five percent stake, according to the Wall Street Journal. Google is also interested in a stake, according to people “familiar with the matter.”
US$ 10 billion is high considering Facebook only took in US$ 150 million in revenue and US$ 30 million in profit this year. But the move may strengthen Microsoft’s ad platform, which, is currently playing catch-up to the likes of Yahoo and Google.
The 40-million strong social network already holds an exclusive ad deal with Microsoft that is expected to rake in US$ 75 million this year alone.
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