Monday, May 19, 2008
Microsoft's Overture to Facebook?
The news on the wires is that Zuckerberg refused to comment:"Asked specifically about the prospect of a sale, Zuckerberg declined to comment." No comment is news when there is so so much speculation about what Microsoft may do next. If Microsoft indeed enters into a 'transaction' with Yahoo, it may not need all of $40 plus Billions. So, given Steve Ballmer's need for ;building scale' quickly, it will not surprise me if Microsoft also explores either a 'transaction' with Facebook. For Microsoft to create a credible alternative to Google, it needs to shore up not only the advertising platform (Pandora from Yahoo helps here) but also recognize the emerging role of social networks (Facebook's Beacon platform helps here). Microsoft can then use these pieces to create a compelling and credible alternative and hope that the Street will give them a boost and not the boot.