Facebook rejected Microsoft's $15B offer

Microsoft exec details company's failed bid to buy Facebook in 2007

At a tech conference in Paris on Friday, a Microsoft executive confirmed that the company made a failed bid to buy Facebook three years ago.

Mark Zuckerberg, CEO of Facebook, turned down an offer of $15 billion from Microsoft's CEO Steve Ballmer, according to Fritz Lanman, Microsoft's senior director of corporate strategy and acquisitions. Lanman divulged information about the failed deal while speaking at the LeWeb tech conference in Paris earlier today.

"Yeah, we tried to acquire Facebook," Lanman said during an onstage interview, according to a report by TechCrunch , " Facebook had a lot of similarities to Microsoft back in the day."

Lanman added that when Facebook rejected Microsoft's offer, Microsoft instead invested $240 million for a small stake in the company.

Microsoft and Facebook continue to work together , announcing in October that they were teaming up to make search more social. As part of this partnership, Facebook's search, which is powered by Microsoft's Bing, is making it easier to find people on the social networking site.

Lanman said Facebook could one day be worth as much as Microsoft.

"It's easy to say that Microsoft missed a huge opportunity in not buying Facebook when Ballmer met with Zuckerberg," said Dan Olds, an analyst with The Gabriel Consulting Group. "But Microsoft offered a huge amount of cash and was repeatedly turned down. Since it's a private company, the best [Microsoft] could do was to take a small stake for $240 million."

And Zuckerberg's decision may have been a good one for the fledgling company. "Who's to say that Facebook would have been nearly as successful if Microsoft had bought them and taken over?" Olds asked. "For all we know, Microsoft might have screwed it up."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags IT industryIT managementMicrosoftFacebookoperating systemssoftwareWindowsWeb 2.0 and Web AppsIT Leadership

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Sharon Gaudin

Sharon Gaudin

Computerworld (US)
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?