Those were the days! Former Microsoft CEO Steve Ballmer is in the mood to spill some secrets, and has rather interestingly, revealed that Redmond was in the mood to acquire Facebook.
The social network.
Of course, Microsoft very recently purchased its own, in the form of LinkedIn, and was also said to be interested in making a deal with Twitter. But back when Facebook was very small, they made a move to acquire it — an offer that was declined by Mark Zuckerberg.
“Oh I think $24 billion when the company was itsy-bitsy and he said no. And I respect that.”
Things would definitely have been a lot different had that happened, that’s for sure!
Microsoft did actually pay $240 million for a small 1.6% stake in Facebook when it was three-and-a-half years old. That was done in 2007, under Ballmer, where the social network had a $15 billion valuation to its name.
And according to David Kirkpatrick’s 2010 book ‘The Facebook Effect’, Microsoft had the option to buy another 5% of Facebook every six months after that first acquisition.
This would have taken 5 to 7 years for a complete takeover.
Obviously, we all know how Facebook’s growth exploded after 2007, with the company now said to have a market capitalization to the tune of $374 billion. Baller, meanwhile, left Microsoft in 2014, and is now actually an investor in Twitter.
October 21, 2016