Microsoft ditches Yahoo, courts Facebook

9th May 2008

Facebook founder Mark Zuckerberg has been approached by Microsoft about a potential takeover, according to a new report.

The software company purchased a $240 billion (£120 billion) stake in Facebook last October, when the user-generated phenomenon was valued at £15 billion.

While active talks are yet to take place between Microsoft and Facebook, the Times claims that the company has replace Yahoo! as the object of the computing giant's affections following the collapse of takeover negotiations with the search pioneer last weekend.

The news follows the publication of a report by Hitwise and Experian, which advised companies to harness the power of social networking sites and the user loyalty they engender.

Facebook has about 70 million users and could triple its UK membership by 2012, Datamonitor claims.

Asian investor Li Ka-shing doubled his stake in the company last March, which the report suggests boosted speculation about its value.