Facebook + MS Funds = overvalued?
Thursday, October 25th, 2007I’m not saying that Facebook isn’t a valuable property, and given the interest that rivals of the software giant had in Facebook, it would make sense to take an ‘at all costs’ approach to the recently announced round of investment, but giving the prince of social networks (yes, MySpace still reigns king of the jungle) a valuation of $15B seems a bit lofty. Given the rumours surrounding Google’s fear of Facebook and looking to become more open than Facebook, I would almost have to believe that their intentions weren’t that serious, but more likely to push Microsoft’s investment price up.
Microsoft isn’t completely stupid, and I don’t imagine this partnership will be, either (despite the price tag). With Facebook looking to become a web-based OS, it could simply be a case of Microsoft keeping it’s friends close and enemies closer. Another idea is ‘the enemy of my enemy is my friend,’ and a unified or co-operative battle against Google is probably more attractive to both companies than trying to battle each other at the same time. Check out these posts for more perspective:






With so much buzz surrounding the site, especially since the opening up to include non-student users and the release of the API earlier this year, it seems a little deflating and almost like a lie to believe the latest 
