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Microsoft To Buy Facebook For $6 Billion?

Rumor is that Microsoft is looking to close a deal to buy Facebook for the amazing sum of six billion dollars. Henry Blodget says that while he can’t confirm it, he has definitely heard that Steve Ballmer is desperately trying to make a big splash play to counter Google in the internet game. Considering that all we’ve been hearing of Ballmer recently is that his focus aas the new leader of Microsoft is in services, it would make sense to grab the most buzzworthy free agent on the web.

What could happen with Facebook? Unlike buying Yahoo, Facebook actually fits into Microsoft’s portfolio, since they don’t have a social network. What Microsoft does have is Windows Live Spaces, the most popular blogging service on the planet, and the two should complement each other. In fact, if an acquisition happens, the Facebook team should be combined with the Live Spaces team, and the two services should become one.

Live Spaces should become the blogging component of Facebook, while features of Facebook should become full-fledged services with those of Live Spaces, like the photo sharing. Soapbox could be integrated with Facebook for video sharing, Live Messenger has a ton of integration opportunities for messaging, pokes, notifications. Facebook applications could be ported as Live.com Gadgets and Sidebar Gadgets. A Windows Live Search box could top every Facebook page.

The more you think about it, the more you see how Facebook would make Windows Live work. I’d argue that Ballmer should be willing to go as high as ten billion, since Facebook can make their Google competitor reality. If Facebook makes Windows Live work, we’re talking maybe a billion dollars a quarter in revenue, more if they reach Yahoo levels. That six billion could be earned back real fast.

July 12th, 2007 Posted by Nathan Weinberg | Live, Corporate, Windows | 41 comments



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41 Comments »

  1. I’m wondering if Microsoft really has nothing to offer when it comes to social networking etc… Are they building on something big, or don’t they. MS released a Facebook SDK a couple of weeks ago, so it seems that it has nothing to offer, but isn’t able/willing to offer for the next couple of months. I’m curious about the whole windows live debacle. Steve Ballmer mentioned in his keynote almost nothing about Windows Live, other than that we’ve to wait. Personally I find it quite interesting that, with the Windows Live vision, there still isn’t a social application platform. Also, years ago Microsoft told the world that Office would be an internet based app. Google has its apps and spreadsheets, but Microsoft???

    Comment by Jaap Steinvoorte | July 12, 2007

  2. Buying Facebook would be a good idea. I live Live Spaces and Facebook. But they’re still different in their own ways.

    I hate how you can’t blog on Facebook. At least that I know of. Having Live Spaces could change that.

    I hate how Live Spaces isn’t really a social network (even though Microsoft says it is). You just find your own friend. There’s no set-up to pick a specific school or group. I hate that. With Facebook it could work.

    It sounds good. At least better than buying MySpace (which sucks)

    Comment by Michael | July 12, 2007

  3. If an acquisition happens, as a facebook user I would wish for the facebook team to be as distanced from being corrupted by Microsoft’s internal mess as possible. Infact I would start a program to send Microsoft employees through facebook’s training instead of vice versa.

    Comment by Zaid | July 12, 2007

  4. Microsoft has Wallop. It may have split off, but that was from them

    Comment by Jason Schramm | July 12, 2007

  5. […] Now blogs within Microsoft are starting to glob onto the rumors . […]

    Pingback by Howard Lindzon » Is Microsoft about to Join the Nasdaq Party with Facebook Acquisition? | July 13, 2007

  6. I sure hope Facebook doesnt sell to MS, its perfect how it is. I think its better that it doesnt allow too much stuff such as blogs. What works about it is it keeps interactions simple yet effective. Most people using it are busy people that just want to keep in touch with friends without spending too much time posting blogs that no one will read and other stuff like that.

    If MS does buy, I hope they keep it largely unchanged and just enhance it.

    Comment by Aaron | July 13, 2007

  7. What happened to windows live six degrees (september 2006 it was on th experience.live.com. “- Six Degrees - Coming Soon
    Will Victor remember in time? Discover how Windows Live makes the world six degrees smaller. Tune in soon—this is one story you won’t want to miss”?

    Comment by Jaap Steinvoorte | July 13, 2007

  8. […] What could happen with Facebook? Unlike buying Yahoo, Facebook actually fits into Microsoft?s portfolio, since they don?t have a social network. What Microsoft does have is Windows Live Spaces, the most popular blogging service on the planet, and the two should complement each other. In fact, if an acquisition happens, the Facebook team should be combined with the Live Spaces team, and the two services should become one. Source: ? Microsoft To Buy Facebook For $6 Billion? ?  InsideMicrosoft - part of the Blog News Cha… […]

    Pingback by Facebook and Microsoft in merger talks–grist on the rumor mill « Blog World Expo Blog | July 13, 2007

  9. If Facebook EVER sold to Microsoft, I would never visit the site ever again. It would probably crash on Windows Servers once or twice a day.!

    Comment by Dennin Lucherini | July 14, 2007

  10. […] being whispered is around three times the price Yahoo offered: a whopping $6 billion dollars. As InsideMicrosoft mentions, it makes a lot of sense for Microsoft to be interested in Facebook, however they plus fail to […]

    Pingback by Facebook and Microsoft getting cosy? | Computers,Gadgets,Software,Hardware,SEO,Mac,Apple | July 14, 2007

  11. […] you hear that Microsoft To Buy Facebook For $6 Billion? They turned down attempts by Yahoo in 2006 to buy the company. All I can do is speculate as to what […]

    Pingback by Geeky Cat Miusings » Latest Buzz | July 14, 2007

  12. being acquired by microsoft was how hotmail began to suck. on well… i hadn’t really bothered much with my facebook profile anyways.

    Comment by robert | July 15, 2007

  13. If all of the changes that are speculated in this article take place, I think that the Facebook community’s backlash would destroy the site. As the Facebook users demonstrated when they opposed the implementation of some features of Facebook’s news feed, the core demographic of the website is against strong changes. As a user, I myself can vouch that I would be livid with a mass commercialization that Microsoft would bring to the table. Facebook is first and foremost a social network, and I think a lot of its users would be betrayed by the staff and Mark Zuckerburg.

    Comment by Chris Ferguson | July 16, 2007

  14. […] more here Share and Enjoy: These icons link to social bookmarking sites where readers can share and […]

    Pingback by Microsoft to buy Facebook for $6 Billion? | July 17, 2007

  15. […] stressful for Facebook founder Mark Zuckerberg right now. Amidst rumors of a coming IPO and a $6 billion offer from Microsoft, Zuckerberg will learn in a federal court hearing this month whether allegations […]

    Pingback by iMoondo Blog » Blog Archive » Amidst Buyout and IPO Rumors, Facebook Faces Federal Hearing | July 19, 2007

  16. I wrote a blog entry about this, Facebook Offered 6 Billion, and the one thing I think is really interesting is that they turned it down!

    They’re not dummies. They either think they can position themselves more strategically through an IPO or they anticipate a better offer.

    Amazing.

    Comment by Melanie | July 22, 2007

  17. If Microsoft spends $6,000,000,000 on Facebook, then it will expect $12,000,000,000 back.

    The only way to earn money is for people to spend money.

    If Microsoft bought Facebook, then Facebook users would be expected to spend $12,000,000,000 on Microsoft Products/Services through a barrage of advertisements until they pony up.

    I don’t understand though. MS already contracted Facebook with a 10 year advertisement agreement. Though Facebook refuses to make the ads “IN YOUR FACE”. Perhaps Microsoft is unhappy with this deal, and believes buying Facebook is the only way to solve it. :|

    Comment by Raccoon | July 26, 2007

  18. Just another spurt in MS to monopolize the ‘net… I for one, as a facebook user, would leave the free social network should they buy it. MS would ruin the concept and simplicity that facebook offers. And they would no doubt, abuse user privacy.

    Comment by Koko | August 2, 2007

  19. […] einer Meldung im Internet, bietet Microsoft für das Social Network “Facebook” rund 6 Milliarden […]

    Pingback by DonRivas.ch » Microsoft will Facebook kaufen | August 13, 2007

  20. Look google is buying everything up that has very common interest to the world market today. No matter what kind of company it will be, they are bought out by them. If not in 3 years but eventually google has rights to mostly everying on the web today. So in speaking in that sense Myspace sold for 580 million now why does Facebook want so much when myspace has 200 million members vs. 39 million from facebook. Now theres lots of Social sites out there that they can buy out for a lot less money and then build it up by themselves and they CAN do it. Here for example i was looking through NEW social sites out in the last 6 months, and i have found 1 that really stood out for me is
    www.my-face.us

    YES, it has two of the first words to the two BIGGEST social groups in history. SO why not?….this website has everything you need for a teen, kid, adult. ANYONE can join it it has cool features e.g. video, audio, playlist for your songs. POST UR OWN BLOGS , personal photos….my kids have joined it and love it its easier to navigate and its a lot of fun they say none of the garbage seen on facebook, they have told there friends and there friends so on and so forth. This actually MIGHT be the next “facebook” or “myspace” i know it is very hard to overcome that but the world is changing to these sites that no one wants to pik up a phone or drive over they want convienence. so why not buy them out NOW at a low cost for say $30 million persay to $2.1 or $6 billion grow from there instead of 2.1 Billion for facebook buy out the little guy and make it bigger when these huge sites are asking WAY TOOOO MUCH…

    Comment by Mike | September 18, 2007

  21. when a site hasnt reached the WHOLE world yet. Why not buy another company out that has everything already there but needs to be “re-surfaced” to make it well known to the kids today..if its free why doesnt everyone do it?…because everyone does not like change that is why. Why not join i even did just to see what the hype was about and I EVEN like it vs facebook so im just saying why doesnt google sit back or yahoo sit back and THINK instead of wasting lots of money where it could be in there pockets and stop playing MONOPOLY and buying everything and think on what they could do and explore more options.

    Comment by Mike | September 18, 2007

  22. all im saying is watch out for this site in 2 years max

    www.my-face.us

    you may think that. “Oh no way no one can do it like facebook or myspace. WATCH OUT i have a feeling that this could b bigger”

    Comment by Mike | September 18, 2007

  23. Has anyone read Facebooks Privacy Policy? It is scary stuff!! Simply put: users don’t own the content in their profiles and F.B. have the right to sell data to whoever they wish.

    I have asked them to provide a list of receivers but they denied… why??

    Comment by will | September 30, 2007

  24. […] If you want to know more about Windows Live What’s New, make sure to check out Rob Dolin’s (Program Manager for the Spaces Home experience) blog post about it.  You can also check out Dare Obasanjo’s commentary on WL What’s New (he also noticed the speediness of the updates).  It’s good to see Microsoft and Facebook in some healthy competition, despite all of the acquisition rumors. […]

    Pingback by Windows Live Spaces takes aim at Facebook’s News Feed « Fasadstan | October 16, 2007

  25. I think all these friendster , facebook, youtube, should really should benefits there users, without us using it, they can never get that kind of DEAL! They should start profit sharing with their loyal users!

    Comment by nikki | October 25, 2007

  26. […] of buzz, not from themselves, rather among many A-list bloggers. Most notably, Microsoft’s rumor to buy Facebook for $6 Billion. I decided to run some quick Google searches on various terms in the […]

    Pingback by Facebook is Great, But Is It Sustainable? | October 30, 2007

  27. NO HE AIN”T

    Comment by STEVO | November 5, 2007

  28. That is alot of money. I dont really care if microsoft buys facebook but that is still alot of money. if i was facebook, i would definentaly take that deal then start another sensational social network!!!
    -Jackson

    Comment by Jackson | November 5, 2007

  29. Boi Stop.

    Comment by STEVO | November 5, 2007

  30. Bill Gates

    hi

    Comment by STEVO | November 5, 2007

  31. Shawty

    Comment by STEVO | November 5, 2007

  32. YOUEH

    Comment by STEVO | November 5, 2007

  33. Its 32 Comments

    Comment by STEVO | November 5, 2007

  34. What up Bill Gates?
    I think you should start donating your money to charities and to people that may not be as wealthy as you. I mean you could be donating that 6 billion dollars to people who need it. Facebook already gets enough money from advertisments and clicks on their site. All im saying is that instead of investing in a social network that isn’t that popular, you should donate it to charity. that would make the world a better place and more poeple would like you. If you donate the money then run for president in 2012, you will definentaly have my vote:).

    Comment by Some child in the US of A | November 5, 2007

  35. :):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):):)

    Comment by STEVO | November 5, 2007

  36. Comment by Cjackson | November 8, 2007

  37. oh no… this is BAD news…

    Comment by Ariady | November 15, 2007

  38. I think, its good decision by Microsoft.

    Comment by Junaid Ashraf | December 6, 2007

  39. […] there’s a lot of speculation of Microsoft will buy Facebook for $6 billion valuation, drastically Microsoft has made a very strategic move. They bought $240 million for 1.6 percent of […]

    Pingback by Microsoft Advertising ala Facebook Style - Microsoft Digital Advertising Solutions : Hisamudin.com - Re-engineering Life | January 22, 2008

  40. […] ‘hip’ web properties. What they really wanted, and have been angling for for months, is Facebook. But Mark Zuckerberg - worth billions and one year younger than me (dammit!) - wasn’t playing […]

    Pingback by Microsoft + Yahoo = Cool? - yworking.com | February 2, 2008

  41. […] If you want to know more about Windows Live What’s New, make sure to check out Rob Dolin’s (Program Manager for the Spaces Home experience) blog post about it.  You can also check out Dare Obasanjo’s commentary on WL What’s New (he also noticed the speediness of the updates).  It’s good to see Microsoft and Facebook in some healthy competition, despite all of the acquisition rumors. […]

    Pingback by Windows Live Spaces takes aim at Facebook’s News Feed | en.buweb | February 24, 2008

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