engine - 10:56 am on Sep 25, 2007 (gmt 0)

Microsoft in recent weeks approached Facebook with proposals to invest in the startup that could value the fast-growing site at $10 billion or higher, said people familiar with the matter. If those talks bear fruit, Microsoft could purchase a stake of up to 5% in the closely held startup, at a cost in the range of $300 million to $500 million, the people said. But Microsoft must first outgun Google, which has also expressed strong interest in a Facebook stake, according to people familiar with the matter.

Microsoft Expresses Interest In Facebook [online.wsj.com]