Facebook in Microsoft’s sights after Yahoo! snub

FacebookMicrosoft may turn its attention to Facebook after Yahoo! rejected its $44.6bn (£22.4bn) takeover bid. Microsoft bought a 1.6% stake in the social networking site for $240m (£120m) at the end of last year, valuing Facebook at $15bn (£7.6bn).

Microsoft is thought to be considering its options after being rebuffed by Yahoo!, which said its rival’s bid “substantially undervalued” the company. It could increase its offer but some experts believe it will walk away and use its money to buy other web 2.0 companies, with Facebook top of its list.

It has emerged that Rupert Murdoch has reignited talks with Yahoo after its rejection of Microsoft’s bid but analysts warn a News Corp/Yahoo! tie up could be fraught with problems.

It is believed that News Corp has floated the possibility of swapping some of its online properties, including its social networking site MySpace, for a stake of more than 20% in a newly merged business. The proposal is similar to one made by Murdoch last year, but which failed to come to fruition.

But Wall Street analysts have pointed out that while a Yahoo! and MySpace merger would be a powerful combination, it may be hampered by the fact that Google supplies MySpace’s search technology, and is bound by a four-year contract.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here