Is Microsoft $10 Bn gamble on Facebook worth it?

Rumours that Software Giant Microsoft is negotiating a stake in social networking site Facebook is proof the IT industry could be in the run-up to another dotcom bust, according to David Bradshaw, principal analyst at Ovum. According to insider, Microsoft is looking to buy 5% of Facebook.com for $500 million, which would value it at $10 billion, ten times what Yahoo offered late last year.

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