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Increasingly Desperate Microsoft Courts Facebook

Written on
May 8th 2008
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by Kathleen  |
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facebook_small.jpgADOTAS – The heat is on! Microsoft Corp. is under serious pressure to come up with a strategy to compete with Google. And its latest tactic in the ongoing (and seemingly endless) war is to quietly circle Facebook Inc. to see if the social networking company is interested in teaming up with a faltering software goliath.

The Wall Street Journal reports that Microsoft’s i-bankers have reached out to Facebook, but its unclear if Facebook is interested. Microsoft invested $240 million in Facebook in October of 2007, for a 1.6% stake.

But could the number two social networking site really help software and tech-heavy Microsoft compete with Google? Industry watchers are skeptical.

Meanwhile, another Google vet is headed to Facebook. Elliot Schrage, Google’s communications chief, is taking the reins at Facebook as vice president of communications and public policy. Schrage is following Sheryl Sandberg’s lead: Sandberg recently jumped from Google as the advertising sales chief to Facebook as COO. Several other top Google employees have also packed their bags for Facebook HQ in recent months.



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