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May 7, 2008 9:26 AM PDT

Microsoft: Saving face by buying Facebook?

by Caroline McCarthy

Microsoft, we get it: That Yahoo thing fell through, and picking up the pieces can be messy. But according to Kara Swisher at All Things D, Redmond just won't give up. The company has reportedly put together a Plan B that it refers to as "Project Granola," a name that makes "Zune" sound good.

And part of "Project Granola," Swisher wrote, is exploring the possibility of turning that $240 million stake in Facebook into an outright ownership.

More specifically, Microsoft's bankers have been shooting "subtle signals" in Facebook's direction, without expecting much of an outcome. "We just want to gauge their interest, more than any real effort," a shadowy financial type told Swisher, adding that he or she doesn't think Facebook will budge from its desire to eventually go public.

But the ultimate goal for Microsoft might be just to acquire some hot Web 2.0 names, not necessarily Facebook. In that case, the likes of Digg or LinkedIn might satisfy Steve Ballmer's appetite.

Just remember to have some plain yogurt with that granola, Ballmer. It tastes better if you keep it simple.

Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos. E-mail Caroline.
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by msimoens May 7, 2008 10:16 AM PDT
Message to facebook: Please don't do it!
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by reality123 May 7, 2008 10:49 AM PDT
eh, anyone more than me that reacted upon the level of this article? sustainable addspace growth, through facebook?
by BlackMicro May 7, 2008 10:18 AM PDT
Say goodbye to FaceBook. You can't blame Microsoft for trying but they definitely don't have the touch. Hey, here's a thought... why don't you do what you do best OS's and software? It's a good place to start.
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by forensicmeteoboy May 7, 2008 10:28 AM PDT
Facebook won't do it. They've said again and again, they're not going to just be bought. However, they need to do something, and fast.

Here at my college, Facebook seems to have decreased in popularity... and I can easily see why. It's not connected anymore. The "Applications" are stupid, limited, and because it seems FB will accept just about anyone, buggy. If they would have opened Applications to say, less than 100, it'd be fine. But now it's just a giant mess... and Facebook chat is more of an annoyance than anything.
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by tigerdraft May 7, 2008 6:52 PM PDT
You're spot on with this comment. It's really buggy and slow, and most of the aps are pointless. I have several friends who have closed their accounts.
by Ian Kirkland May 7, 2008 10:32 AM PDT
I think saying that OSs and software are what they do best is hilarious considering the current state of Windows and Office tools. Yikes!
But, in any case, I agree. They should return to their primary business and stop trying to be all things to all people. Can you imagine if Ford started making frdges? LOL!
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by JCPayne May 7, 2008 10:56 AM PDT
Poor M$..... 0- for 2- will look like an absolutely horrible track record.
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by Magallanes May 7, 2008 2:24 PM PDT
Microsoft didn't buy facebook, cause currently this stink even worst that myspace.
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by dangtrade May 7, 2008 10:30 PM PDT
Microsoft are still in their moneymoon period... i think they should divert this money into research & development and continue to do what they do best - for instance 'live mesh' - now that is some super cool stuff!

regards,
www.dangtrade.com
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by karaokedagger May 11, 2008 10:27 PM PDT
If you want to see what Microsoft running Facebook would be like, check out:

http://ca.youtube.com/watch?v=fuS0dEfDjTo
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About The Social

CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

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