It's still a rumor and buries some interesting questions:
If Microsoft invests in Facebook and some additional hedge funds, Facebook could get some $500M to $750M cash in the bank. That's IPO like money. The company would have what they'd gain at an IPO without getting public (yet) and con continue operate like a public company. NICE!
Would an investment in that size determine a $15B market-cap now - what would that mean for the real IPO? Is there a $30Billion market cap opportunity? More than any automobile giant or
only 50% away form SAP? Would that valuation kill Facebooks IPO, because there is no short term upside? May be NOT SO NICE.
Is this the begin of yet another bubble? Oh well.
Would Facebook as friend of Microsoft be enemy of Google? NOT NICE.
So if it is becoming for real would that be a good deal for Microsoft? For the industry as a whole? Even for Facebook? TOO PATHETIC.
Would the deal block out certain future investors? Sure. Would it accelerate certain other peaple to invest? Sure.
An age old rule says: "If somebody offers you good money, take it."
We'll see