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Thursday, May 08, 2008
Microsoft Sends Out Feelers to Facebook


Microsoft gauged Facebook's interest in a possible acquisition after the software giant's failed takeover attempt of Yahoo, the Wall Street Journal reported on Wednesday.

The newspaper reported on its Web site that Microsoft's bankers put out subtle signals to Facebook, the social networking Web site, to see if it would be open to a full acquisition.

The talks were first reported by Web site All Things Digital, owned by Wall Street Journal publisher Dow Jones.

Facebook and Microsoft declined to comment on the report. In October, Microsoft took a $240 million stake in Facebook, which valued the start-up at $15 billion. Citing an unnamed source, the report said there are no active discussions between the two companies.

The news came a few days after Microsoft dropped its unsolicited offer to buy Yahoo for $47.5 billion.

Facebook has become one of the hottest properties on the Internet because of its rapid growth and the loyalty of its users. Facebook has more than 70 million active users.


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