Microsoft has been losing money with its search engine Bing to the tune of $2.5 billion annually. This has led to some rumors that Microsoft could decide to sell its Bing operations to Facebook in exchange for a larger stake in the social networking site ahead of its much awaited IPO.
This would really make sense for Microsoft as it has been funding billions of dollars towards Bing with only losses being reported on its balance sheet. Additionally, it would actually be a mutually beneficial deal since Facebook will now have a Google-type algorithm based search engine. Facebook would actually benefit from acquiring Bing as it competes with the tech giant Google.
Facebook and Microsoft would both share a desire to try to compete against their mutual adversary Google and this is a perfect way to step up their respective games in the ongoing rivalry.
All this sounds very attractive, but Facebook seems to be having a lot on its plate right now. Mark Zuckerberg’s juggernaut is now going to record its largest acquisition ever when Facebook spends $1 billion to purchase Instagram, the photo-sharing application.
Moreover, Facebook is also busy preparing for its initial public offering on the NASDAQ. The social networking site is reported to be looking for a date in May either in the third or fourth week of that month. As of now, no one at Facebook has commented about any possibility of acquiring Bing from Microsoft in an attempt to level the playing field with Google.