The phenomenally popular social networking website Facebook was at the centre of ownership speculation following reports last night that Microsoft was poised to buy a 5% stake, valuing the site at as much as $10bn (£5bn).
Such is Facebook's success that the deal could make its founder Mark Zuckerberg, 23, one of Silicon Valley's wealthiest men according to the Wall Street Journal, which cited sources close to the negotiations.
If accurate, the valuation would amount to $238 for each of the 42 million people who have profiles on Facebook - a site which provides an easy forum for people to stay in touch with friends by exchanging photos, messages, electronic "gifts" and tips.
Mr Zuckerberg, a Harvard dropout who conceived the site in his college dormitory, is keen to raise money to give Facebook sufficient firepower to make acquisitions in computer infrastructure and to expand the site's workforce. If the talks are successful, Microsoft could pay between $300m and $500m for a chunk of shares.
It is not the first time Facebook has been the target of interest from the technology industry's established players. Yahoo! tried to buy it for $1bn last year and Google has expressed interest in investing.
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