Microsoft confirms Facebook rejected its $15-bn offer in 2007
13 Dec 2010
Software giant Microsoft last week confirmed 2007 media rumours that it had proposed to buy Facebook for $15 billion, a deal that was rejected by the social networking website's co-founder and CEO Mark Zuckerberg.
Fritz Lanman, senior director of corporate strategy and acquisitions at Microsoft, confirmed on 10 December 2010 that Microsoft CEO Steve Ballmer did indeed make the offer, which was rejected by Zuckerberg, who wanted to keep control of the company that he founded in 2004.
Responding to a question posed by French entrepreneur and blogger Le Meur, on the ''How To Get Acquired'' panel, Lanman said that ''Yeah we tried to acquire Facebook…….. it had a lot of similarities to Microsoft back in the day.''
He, however responded with a ''No comment,'' when asked whether Microsoft was willing to pay $15 billion for Facebook, but speculated that the social networking site's valuation will reach Microsoft's in the near future.
Microsoft's offer to buy Facebook was first reported by former senior editor at Fortune magazine David Kirkpatrick in his book ''The Facebook Effect.''
Kirkpatrick wrote that in 2007, Ballmer had offered Zuckerberg $15 billion but instead ended up with a advertising deal and a 1.6 per cent stake for $240 million, valuing Facebook at $15 billion. (See: Microsoft pips Google to acquire a stake in Facebook)
