So.. Will Microsoft Buy Social Networking Site Facebook?

Should and Could Facebook sell out to Software Behemoth Microsoft? That's a tantalising prospect that was proposed by respected news outlet Wall Street Journal, which normally has very well placed sources.

According to WSJ, Microsoft has informally approached the site for a buyout after talks with Yahoo ended in disarray and Microsoft vowing never to be bitten again.

Microsoft's financial team contacted Facebook although it remains unclear how far the talks went.

It also shed some light on the strategy that Microsoft is adopting when it comes to large scale acquisitions after its offer has been rejected by Yahoo.

Microsoft already own 1.6 percent of yahoo which it purchased last year and although a Facebook purchase would give Microsoft a fairly large online presence, it would be insufficient in the long term plan to topple Google.

Facebook as a valuation of USD 15bn and is forecasted to take over Myspace as the top social networking site in terms of unique visitors later this year if its rate of growth is maintained.

And although ad revenue is projected to rise this year, Microsoft still accounts for a sizable fraction of that and the gloomy economic background is not making it any easier, as Myspace is finding it out the hard way.

Pageviews do not translate into money.

Microsoft Made Eyes At Facebook as Talks ith Yahoo Waned - WSJ

Microsoft’s Project Granola–Facebook Tastier Than Yahoo? - All Things D

News Corp: Selling Ads For MySpace Is Hard Work! - Silicon Alley Insider