Facebook Won't Help Microsoft

Buying a piece of Facebook would represent yet another sign of desperation from Microsoft(MSFT Quote).

The Wall Street Journal reported earlier this week that the software giant was considering a purchase of 5% of the popular social-networking site in a deal that would value Facebook overall at a staggering $10 billion.

According to the report, Facebook founder Mark Zuckerberg might be holding out for deals that would bring his company a valuation of $15 billion.

But a buy-in by Microsoft at those inflated valuations would simply herald the next chapter in the company's perpetually mangled Internet strategy.

	Is Microsoft's interest in Facebook desperate or smart? Answer Here

Despite the hype surrounding Facebook, things are much less rosy for the site than is often assumed. And while a move by Microsoft is seen as a bold move against Google(GOOG Quote) -- "Microsoft fires volley at Google in ad battle," the Journal titled its story -- it just shows just how far ahead the search giant is when it comes to all things Internet.

Want more? Check out TheStreet.com TV video. Vishesh Kumar discusses Microsoft and Facebook with Alix Steel.

The hallmark of Microsoft's Internet strategy seems to be to throw money around. In March, the software giant announced a plan to offer a variety of rebates to businesses whose employees would use Microsoft's search engine at work. Despite offering what in effect amount to bribes, Microsoft continues to lose ground to Google in search.