• The Wall Street Journal, Tuesday, September 25, 2007 11 AM

Microsoft is in talks to buy a minority stake in the social-networking Web site Facebook, a sign by the software giant to jump-start its online business at a time when Google is widening its lead in the fast-growing Internet-advertising business. If these talks bear fruit, it could purchase up to 5% of the closely held startup for $300 million to $500 million. But Google has also expressed strong interest in a Facebook stake.

Microsoft also has quietly granted broad powers to Brian McAndrews--an advertising executive who joined Microsoft last month through its $6 billion acquisition of aQuantive. McAndrews is expected to help shake up the software giant's online business.

Some industry executives believe the Internet is facing the sort of turning point that the computer-operating-system sector confronted two decades ago: Whoever controls the technology platform for buying and selling online ads could hold tremendous power over the Internet industry --much as Microsoft was able to use its Windows operating system to shape the personal computer.

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