Microsoft Ready to Buy Share of Facebook

The phenomenally popular social networking website Face book 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 Face book'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 Face book - 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 Face book 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 Face book 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.

Founded three years ago, Face book was originally for university and school students. The site has become arguably the internet's hottest property since it threw open membership to anybody last September. It is gaining 200,000 new registrations every day.

Of its membership, 5 million are from Britain ranking the country third behind the US and Canada.

Microsoft and Face book declined to comment last night.