MS-facebook
Microsoft Corp is talking to Facebook about buying a minority stake in the fast-growing online social network that could value the company at $10 billion or more, the Wall Street Journal reported on its Web site on Monday.
Citing people familiar with the matter, the Journal said the world’s largest software company sought to buy a stake of up to 5 percent in Facebook for $300 million to $500 million.
Facebook, led by its 23-year-old founder and Chief Executive Mark Zuckerberg, may insist on a valuation as high as $15 billion and is considering raising up to $500 million in cash to expand its operations, according to the Journal. more
I think the problem wtih social network valuations is that they think the user will be there for life. So they have no problem valuing it at $300-500 per user…because they think they’ll get that money.
I would think MS sees Facebook as a platform and social network. They would probably know best about the value of user embraced platforms like Facebook. It will be interesting to see how the agreements work themselves out and how advertising deals will play out.
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