Facebook rejects Microsoft's acquisition offer

Published: Friday, December 10, 2010, 15:50 [IST]
 
Facebook rejects Microsoft's offer

San Francisco, Dec 10: One of the executives of Microsoft has admitted that the company tried to acquire social networking giant Facebook in 2007 but failed to impress Facebook's co-founder Mark Zuckerberg.

Technology blog TechCrunch reported that during an interview Microsoft's senior director of corporate strategy and acquisitions, Fritz Lanman, admitted Microsoft's vain attempt to acquire Facebook.

Fritz Lanman told that Steve Ballmer, chief executive officer of Microsoft Corporation, offered $15 billion to Facebook, but Mark Zuckerberg rejected the offer because he didn't want to lose control.

"Ballmer took this reply as sort of challenge. He went back to Microsoft's headquarters and concocted a plan intended to acquire Facebook in stages over a period of years to enable Zuckerberg to keep calling the shots," said Fritz Lanman.

"But Zuckerberg rejected all the overtures. What Ballmer finally agreed to instead was an advertising deal that included a provision for Microsoft to pay a huge amount, $240 million, for a sliver of Facebook, 1.6 percent. Microsoft"s investment gave Facebook an implied value of $15 billion," he added.

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