Is Facebook Worth More to Microsoft Than Others? (MSFT, GOOG, YHOO)

The WSJ (wsj.com) (subscription required for full access) has reported that Microsoft (NASDAQ:MSFT) may be making an investment into Facebook that would supposedly value Facebook at $10 Billion.  That doesn’t mean this is a $10 Billion buyout nor that $10 Billion is what Microsoft will pony up for the company.  Google is also reported as being interested, althogh this situation has been covered from almost every single angle out there in recent months.

But it would put a substantial valuation on this social networking site.  After the success of News Corp’s (NYSE:NWS) MySpace and after the ramp of Google’s (NASDAQ:GOOG) YouTube, everyone has catching up to do.  The space is not wide open, but it isn’t yet closed.

• Yahoo! (NASDAQ:YHOO) has been interested in Facebook as well, but the price was deemed too high at the time.
• We have hit the measurement that the company on its own was not worth much.
• These last August numbers were pretty strong though.
• There was always that pesky lawsuit that was a barrier as well.

Jon C. Ogg
September 24, 2007