Microsoft Buying Facebook for $6 Billion?

The rumor of the day seems to be that Microsoft is buying Facebook for $6 billion. This would be huge news if true. While I’m fairly skeptical of this, especially since $6 billion is a ton of money, it would still be a smart move by Microsoft. Last month I mentioned why Microsoft should buy Facebook. The main focus of my argument was that Microsoft needs something to help them gain ground in online search. I think Facebook could provide this opportunity given that they have become the people’s search engine. Unfortunately this is still a rumor but I have a feeling that Microsoft is Facebook’s last chance of an acquisition pre-IPO. I don’t think that the markets are going to be as friendly in giving Facebook a huge valuation given their current revenue base. It will be interesting to see if anything comes out of this.

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