The Week: Online News - Microsoft link to Facebook

Microsoft is reportedly in discussions about acquiring a 5 per cent stake in the social networking site Facebook, which is now being valued at around £5 billion to £10 billion.

Facebook, which was set up three years ago by the Harvard graduate Mark Zuckerberg, could now become the centre of a global bidding war between Microsoft and Google, which has also been linked with acquiring a stake in the site. According to reports in The Wall Street Journal, Microsoft has approached Facebook's owners in the past two weeks about acquiring a 5 per cent stake in the site, which would equate to a $500 million to $800 million investment.