IMO Facebook is grossly overvalued, although so is the US dollar, and MSFT is only acquiring a small piece, so maybe not that big of a deal. The bigger deal might be the hype it generates, and the corresponding overvaluation that the hype generates for other acquisitions. -- KM

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Microsoft Is in Talks To Buy Facebook Stake — SAN FRANCISCO — Microsoft Corp. is in talks with Facebook Inc. about making an investment in the social-networking startup that could value Facebook at $10 billion or more, according to people familiar with the matter.
Source: Wall Street Journal

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