Microsoft Speaks On Facebook Deal

    November 5, 2007

Microsoft Chief Executive Steve Ballmer defended his company’s purchase of a 1.6 percent stake in social network Facebook for $240 million.

"We didn’t make a mistake," Ballmer told reporters at a business conference in Mumbai. "The valuation of Facebook is still to be determined. Certainly today, it’s very, very popular. So for a company like ours that wants to be a pre-eminent presence in this space, it’s very important for us," Ballmer said.

On how much Facebook is worth Ballmer said, "Will Facebook be worth $5 billion, $15 billion or $50 billion some years down the line is really up to their team and how they take it forward," according to Reuters.

 Online Shopping Grows 30%

Ballmer said last month that Microsoft was concentrating on making smaller purchases of $50 million to 1 billion annually instead of larger deals. When questioned about possibly acquiring Yahoo he said, "My answer is a considered ‘no comment’. We want to succeed in the online advertising space. What happens with Yahoo, we’ll all have to wait and see."