Rumor: Facebook to Choose Google or Microsoft

    October 24, 2007

The New York Post is bold in its prediction that Facebook will announce which suitor will win its hand in marriage, in the next 48 hours.

FacebookIt seems it’s a two-horse race with Google and Microsoft both vying to buy a 5-10% stake in the social network.

The Post suggest Google’s trying to run-up the price to try and scare off Microsoft. It doesn’t appear to be working…

…Microsoft is hanging tough, despite recent comments by CEO Steve Ballmer that social-networking sites were “a bit faddish.” One source said the Redmond, Wash.-based company is “willing to give any valuation possible” to keep Facebook away from Google.

While there will be spoils for the victor–Facebook is by far the hottest network right now–it will be interesting to see how much they have to cough-up. For Facebook, it’s as much about the money now, as it is about the subsequent valuation this deal will give them. If they sell 10% for $1.5 billion, that gives them a whopping $15B valuation. Nice!