Microsoft is considering acquiring
Facebook in the wake of its failed bid
to buy Yahoo.
Earlier this week, the software giant's lawyers approached the social network
about the possibility of a total takeover, according to US media reports.
Microsoft paid $240m (£115m) for a 1.6 per cent in the site last October.
Neither company is currently commenting.
Microsoft's interest in Yahoo appears to have waned following the collapse of
its takeover bid. Last week the firm offered to buy the search giant to $47.5bn,
up from the original $44.6bn bid made in February.
Yahoo declined that offer, bringing an end to talks between the two
companies.
Meanwhile, Peter Chernin, president of
News Corp, confirmed that his
organisation was no longer involved in talks to acquire the search firm.
Elsewhere, Microsoft chairman Bill Gates told a press conference in Tokyo
that sales of its Vista operating system had been "rapid", saying the firm had
shipped 140 million copies since launch. Microsoft said it was working on the
next version of its operating system, code named "Windows 7".
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