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The long series of rumors finally came true today as Microsoft won the bidding to acquire a small equity interest in the Facebook social networking site and got the rights to foreign ad sales:
Microsoft CEO Steve Ballmer’s recent characterization of the Facebook social networking site as “faddish” apparently isn’t keeping him from reaching for his wallet in what is rumored to be a bidding battle with Google for a small but expensive piece of the fad.
Yesterday, the “Microsoft acquires Facebook” rumors were back according to the Wall Street Journal, with the twist that the unidentified sources say that Microsoft is now only asking for 5% of the hot social networking fad site, but would pay a price that would give Facebook an over $10 billion dollar valuation.
Supposedly Facebook would dearly love the public valuation and could use a little walking around money, while Microsoft would love to demonstrate some trendy credentials and perhaps permanently lock in their Facebook advertising deal.
Almost exactly a year ago, Microsoft and the much hyped Facebook social networking Web site announced “a strategic alliance” around advertising which had them collaborating to bring relevant advertising to Facebook users and:
As part of the relationship, Microsoft will be the exclusive provider of banner advertising and sponsored links on Facebook using Microsoft’s digital advertising solutions and the Microsoft adCenter platform. The two companies also agreed to work together on future technology and advertising initiatives.
Admittedly it was a rushed marriage, but now according to a Wall Street Journal report, Facebook seems to want to go its own way:
