MICROSOFT’S $15 BILLION BID KNOCKED BACK BY FACEBOOK

MOBO Media

Microsoft has this week confirmed that they attempted to buy Facebook in 2007 for $15 billion (£9.5 billion).

The admission came during Le Web Conference in Paris where Microsoft’s senior director of strategy acquisitions, Fritz Lanman, was speaking as part of the panel.

Lanman revealed that Microsoft had attempted to acquire Facebook back in 2007 for $15 billion but this offer was rejected. The Microsoft boss added that the social network was a particularly appealing proposition as Lanman described Facebook as being reminiscent of an early Microsoft.

This buy-out attempt was first reported in David Kirkpatrick’s book, The Facebook Effect, in which he reports that the social network founder, Zuckerberg, rejected Microsoft’s offer because he wanted to keep control of the company.

After the offer to acquire Facebook was rejected, Microsoft instead opted to invest $240 million into the social network which gave them a 1.6% share of the company, and the chance for the two organisations to cooperate in the future.

The move has been of mutual benefit to both companies with Microsoft indexing Facebook updates on its search engine Bing, and by also offering Facebook users the chance to use a web-based version of Microsoft Word, known as Docs.com.

Fritz Lanman became the first person from the Microsoft corporation to confirm that a buy-out attempt of Facebook had taken place.

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