We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,258 News Articles

Microsoft turns its attentions to Facebook

Wall Street Journal predicts a merger

After abandoning its plans to purchase Yahoo, Microsoft has now turned its attentions to the social-networking site Facebook, according to the Wall Street Journal.

The paper's website reports that Microsoft has informally approached Facebook to ask whether the company might be interested in selling, although the two companies are not thought to be in official talks regarding a deal.

Microsoft already owns a 1.6 percent stake in Facebook following an investment of $240m (£120m) last year, but analysts aren't convinced that acquiring the website would give a sufficiently large boost to Microsoft's online efforts to make the deal worthwhile.

"Facebook is another property in which Microsoft can sell adverts, but it doesn't move the ball toward the goal line in terms of competing with Google," Rob Helm, director of research at Directions on Microsoft, told Forbes.com.

According to Rebecca Jennings, an analyst with Forrester, Microsoft and Facebook have "fundamentally different cultures".

"Facebook was set up primarily as a services business, whereas Microsoft's origins are as a software and technology company," she told The Times.

If Microsoft does push forward with this deal, it will face opposition from Facebook's thousands of members. At least five Facebook groups have already been set up in protest against the merger, including If Facebook sells to Microsoft, we're leaving and Don't sell Facebook to Microsoft!


IDG UK Sites

Best Christmas 2014 UK tech deals, Boxing Day 2014 UK tech deals & January sales 2015 UK tech...

IDG UK Sites

Chromebooks: ready for the prime time (but not for everybody)

IDG UK Sites

Hands-on with Sony's latest smartglasses

IDG UK Sites

The 13 most inspirational Tim Cook quotes