Microsoft Eyes Facebook

Now that Microsoft has pulled out of it’s bid to takeover Yahoo it is reported to be eyeing Facebook (groan!). There have been a number of reports over the last couple of days around this eg this one at Reuters. It is clear that Microsoft are desperate to get hold of someone with a large user base. Yahoo would have provided that and more but seemed to think they were worth a whole lot more cash or couldn’t stand the idea of a partnership with Microsoft.

Facebook on the other hand have already accepted a few dollars ($200+m) in the past from Microsoft so I’m sure they would be willing to accept more, a whole lot more. I am sure Microsoft see Facebook as a great way to get a foothold in the whole social networking setup, access to a huge user base and lots of “personal” information. Just what Microsoft would end up doing with/to Facebook is a little unclear. I’m not sure I would stick around to find out.

Anyway where there is smoke there is fire so expect more developments soon.